James Peck, from Ohio State University, will be visiting UCL School of Management to present a seminar on ‘Temporary boycotts as self-fulfilling disruptions of markets.’

Abstract

We consider a two-period durable goods monopoly model with demand uncertainty. When uncertainty is non-multiplicative, there can be equilibria in which, whenever the period 0 price exceeds a threshold, then with positive probability all consumers boycott in period 0. A consumer who in period 0 would purchase in the non-boycott equilibrium is willing to join a boycott because a boycott prevents the firm from learning demand. This dampens period 1 prices on average and makes the boycott self-fulfilling. Connections to the bank runs literature are discussed.

UCL School of Management Research Seminars are an opportunity to hear from world-leading experts in an interactive and lively setting. Researchers from the world’s top business and management schools are invited to present their work and engage in discussion. 

The seminars are held frequently throughout the year, usually at the UCL Bloomsbury Campus off Gower Street in central London.