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Quality Is in the Eye of the Beholder: Taste Projection in Markets with Observational Learning

By: Contributor(s): Material type: TextTextPublication details: American Economic Review; 2024Description: 3746-3787ISSN:
  • 0002-8282
Subject(s): Online resources: Summary: 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
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Article Index Article Index Dr VKRV Rao Library Vol. 114, No. 11 Not for loan AI1093

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

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