Overconfident Consumers in the Marketplace

  title={Overconfident Consumers in the Marketplace},
  author={Michael Grubb},
When consumers sign contracts, expectations about future usage of the product or service matter. For instance, the value provided by car insurance depends on how likely a consumer believes she is to file a claim, the value provided by a gym membership depends on how often a consumer anticipates going to the gym, and the value provided by a cellular phone contract depends on how many gigabytes of data a consumer anticipates using. The standard modeling paradigm assumes that consumers have… CONTINUE READING
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