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Effect of conformism on firm selection, product quality and home bias
Journal of Economic Behavior & Organization ( IF 2.000 ) Pub Date : 2021-03-24 , DOI: 10.1016/j.jebo.2021.02.017
Sergey Kichko , Pierre M. Picard

This paper discusses the effect of conformism on the demand for products that differ in quality and studies its implications for firm selection, entry, average quality, and trade patterns. Demand for each variety is shown to fall when consumers have a lower degree of conformism or when the distribution of conformism becomes more concentrated. This induces firms facing lower demand and of lower quality to exit the market, which raises average quality and diminishes product diversity. In an international trade context, home consumption bias is amplified when there is a lower degree of conformism. Home consumption bias is mitigated by the presence of global conformism, in which individuals tend to conform to people across the world rather than within their own country.



中文翻译:

顺应性对公司选择,产品质量和家庭偏见的影响

本文讨论了共形对不同质量产品需求的影响,并研究了其对公司选择,进入,平均质量和贸易模式的影响。当消费者的遵从程度较低或遵从分布更加集中时,对每个品种的需求都会下降。这促使面临较低需求和较低质量的公司退出市场,从而提高了平均质量并减少了产品多样性。在国际贸易的背景下,当遵循程度较低时,住房消费的偏见就会加剧。全球顺从性的存在减轻了住房消费的偏见,在全球顺从性中,人们倾向于顺应世界各地而不是本国人民。

更新日期:2021-03-24
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