Quality Is in the Eye of the Beholder: Taste Projection in Markets with Observational Learning
- American Economic Review 2024
- 3746-3787
We study how misperceptions of others' tastes influence beliefs, demand, and prices in markets with observational learning. Consumers infer a good's quality from the quantity demanded and price paid by others. When consumers exaggerate the similarity betw
0002-8282
Communication Information and Knowledge Information and Product Quality Learning Micro-Based Behavioral Economics Market Structure