Seminar

Past

Procrastination Markets

Paul Heidhues

  • Date5 December 2022
  • Time 14h15 - 15h30
  • Room Auditorium 4

Abstract

We develop models of markets with procrastinating consumers when competition operates — or is supposed to operate — both through the initial selection of providers and through the possibility of switching providers. As in other work, consumers fail to switch to better options after signing up with a firm, so at that stage they exert little downward pressure on the prices they pay. Unlike in other work, however, consumers — falsely expecting to do still better in the future — are not keen on starting with the best available offer, so at this stage they do not generate much price competition either. In fact, a competition paradox results: an increase in the number of firms or the intensity of marketing increases the frequency with which a consumer receives switching offers, so it facilitates procrastination and thereby potentially raises prices. By implication, continuous changes in the environment can, through a self-reinforcing entry or marketing process, lead to discontinuous changes in market outcomes. Sign-up deals serve their classically hypothesized role of returning ex-post profits to consumers extremely poorly, while in other senses they exacerbate the failure of price competition. (joint work with Botond Koszegi and Takeshi Murooka.)

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  • Industrial Organization seminar

  • Date 7 December 2026

  • Place Auditorium 4

  • Speaker or organiser Teck Yong Tan (University of Rochester)

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To be announced

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  • Date 16 November 2026

  • Place Auditorium 4

  • Speaker or organiser Sandro Shelegia (University of Pompeu Fabra, Barcelona)

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Joint IO-Finance Seminar - Platform money

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  • Date 9 November 2026

  • Place Auditorium 4

  • Speaker or organiser Kathy Yuan

Details