Dr. Zakaria Babutsidze Thesis: Essays on Economies with Heterogenous Interacting Consumers Year: 2010 Promotor(s): Robin Cowan Abstract: The current thesis is concerned with the importance of the consumer interaction for deriving aggregate implications in theoretical models. Applications discussed include advertising and R&D policies. The thesis demonstrates that changes in structure and intensity of consumer interaction can drastically change the aggregate behaviour of demand. As a result, it warns that basing firm and government policies on theoretical models ignoring, or not accurately modeling, consumer behaviour might lead to outcomes that are far from the desired ones.
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