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Cognitive Dissonance and Customer Allegiance in a Mixed Oligopoly AgEcon
Lamprinakis, Lampros; Fulton, Murray E..
The purpose of this article is to examine the effect of cognitive dissonance in a mixed oligopoly where a local cooperative competes with an investor-owned firm (IOF) for the local market. The article explicitly incorporates individuals' beliefs regarding the quality of the two organizations as a choice variable in the utility function and individuals trade off utility from beliefs against utility resulting from their actions. The proposed model considers a case where managerial decisions or the introduction of new products forces consumers to modify their initial beliefs regarding the (superior) quality of their cooperative. Analytical results demonstrate the changes in equilibrium that result from cognitive dissonance.
Tipo: Conference Paper or Presentation Palavras-chave: Consumer/Household Economics.
Ano: 2006 URL: http://purl.umn.edu/21228
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Mental Frames and Organizational Decision-making: Facing the Challenges of Change AgEcon
Lamprinakis, Lampros; Fulton, Murray E..
Adjusting to the strategic, business and economic changes requires efficient decision-making procedures which can in turn be highly affected by the underlying mental frames that the leaders of the organization hold. This article examines the impact of these mental frames on decision-making with respect to a specific attribute of a decision-making process: the belief that a CEO of a co-operative holds regarding member commitment. The analysis develops a simple theoretical model that shows how the co-op CEO’s obsolete mental frame creates distortions on decision making that can have negative effects on co-op’s strategic decisions and its market share. The starting point of the analysis is the case of the Saskatchewan Wheat Pool (SWP) – a Canadian grain...
Tipo: Conference Paper or Presentation Palavras-chave: Industrial Organization.
Ano: 2011 URL: http://purl.umn.edu/114407
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