Some Implications of Beliefs for the Public and Private Sectors

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Decision-Making and Behavioral Economics Economic Theory and Institutions Economic and Environmental Valuation

Abstract

In this paper, the Lancaster-Becker approach to consumer choices is used to show that because private and public goods possess "credence " characteristics, there is room for cognitive dissonance and permanent misperceptions that have peculiar efforts on advertising, as well as public and private expenditures.

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References

1970Information and Consumer Behavior 1973Free Competition and the Optimal Amount of Fraud 2005The Economic Consequences of Cognitive Dissonance 1960Why The Government Budget Is Too Small in a Democracy 1963Effect of the severity of threat on the devaluation of forbidden behavior.1965Long-term behavioral effects of cognitive dissonance 1979MARKET STRUCTURE, DURABILITY, AND QUALITY: A SELECTIVE SURVEY

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