Essays on Economies with Heterogenous Interacting Consumers

Zakaria Babutsidze, UNU-MERIT

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.

Venue: Minderbroedersberg 4-6, Maastricht

Date: 01 December 2010

Time: 10:00 - 11:30