Alexander Morell Do Exclusivity Rebates Cause Psychological Switching Costs in Consumers?

Alexander Morell is Senior Research Fellow at the Max Planck Institute for Research on Collective Good in Bonn (Germany). He is a doctor of laws and holds a PhD in economics. In his research he focuses on civil law, antitrust law and experimental economics. Morell was awarded the Otto-Hahn-Medal of the Max Planck Society for his doctoral thesis on target rebates.

Area of Research

Civil Law, Antitrust Law, Experimental Economics

Alexander Morell, Andreas Glöckner and Emanuel V. Towfigh. "Sticky Rebates: Loyalty Rebates Impede Rational Switching of Consumers." Journal of Competition Law and Economics 11 (2015): 431-461.  
Alexander Morell. "Die Rolle von Tatsachen bei der Bestimmung von ‘Obliegenheiten‘ im Sinne von § 254 BGB am Beispiel des Fahrradhelms." Archiv für die civilistische Praxis 214 (2014): 387-423.  
Alexander Morell. "The Short Arm of Guilt: Guilt Aversion Plays Out More Across a Short Social Distance." Max Planck Institute for Research on Collective Goods 2014/19 (2014).  
Alexander Morell. "Kartellschadensersatz nach ‘ORWI‘." Wirtschaft und Wettbewerb 63, 10 (2013): 959–970.  
Alexander Morell. "(Behavioral) Law and Economics im europäischen Wettbewerbsrecht: Missbrauchsaufsicht über Zielrabatte." Wirtschaftsrecht und Wirtschaftspolitik 255 (2011): 284.  

since 2011

Senior Research Fellow

Max Planck Society (more details)

Max Planck Institute for Research on Collective Goods

2011

Law Clerk

European Commission, DG Market (Financial Services Regulation)

2010

Law Clerk

Freshfields Bruckhaus Dehringer, Dispute Resolution

2010

Law Clerk

German Cartell Office

2009

Law Clerk

Public Prosecutor of Bonn

2009

Law Clerk

District Court of Bonn

2008-2008

Visiting Researcher

University of California, Berkeley

Berkeley Law School

2006-2011

Research Fellow

Max Planck Society (more details)

Max Planck Institute for Research on Collective Goods

2001-2005

Student Research Assistant

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Institute for Legal History

2015

PhD in Economics

Friedrich Schiller University Jena (Friedrich-Schiller-Universität Jena)

Thesis "Opportunities of Cross-Fertilization between Law and Experimental Economics"

2011

Second State Exam in Law

Ministry of Justice, Northrhine-Westfalia

2010

Doctor of Laws

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

International Max Planck Research School

2006

First State Exam in Law

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Appellate Court of Düsseldorf

2004

Diplôme du Cycle

Institut d’Etudes Politiques (Sciences Po) Paris

Fellowships

Friedrich Ebert Foundation (2002-2006)

Otto-Hahn-Medal (2011)

© Maximilian Dörrbecker

Max Planck Society


"The Max Planck Society is Germany's most successful research organization. Since its establishment in 1948, no fewer than 18 Nobel laureates have emerged from the ranks of its scientists, putting it on a par with the best and most prestigious research institutions worldwide. The more than 15,000 publications each year in internationally renowned scientific journals are proof of the outstanding research work conducted at Max Planck Institutes – and many of those articles are among the most-cited publications in the relevant field." (Source)

Institute

Max Planck Institute for Research on Collective Goods

"Many goods are not obviously best provided by unregulated markets. This does not necessarily imply that government does a better job. But research can do society a service in defining why markets have a hard time with some goods, and in comparing institutional arrangements aiming at their provision. In a precise way, the problem is defined by the concept of public goods. Capitalising on the theory of mechanism design, it can be further improved. Using experimental methods, it can be put into perspective. Yet some social dilemmas are better analysed in alternative categories. It may even be preferable to start analytically from the political decision to intervene into markets. The institute tackles these questions from the combined perspectives of economics, law and psychology. While the institute started with applications from environmental problems, current work focuses on antitrust, regulation and financial stability." (Source)

Map

Firms, be it coffee shops or airlines, often try to bind customers with exclusivity rebates rewarding loyalty. The lab experiment presented in this video reveals that these programs are “sticky”: customers stay in those programs longer than would be “rational”. As ALEXANDER MORELL explains, customers often don’t switch to alternatives even if reaching the rebate becomes improbable. Contrary to common behavioral assumptions, the duration of rebate programs or the size of rebates did not affect the stickiness of the rebate.

LT Video Publication DOI: http://dx.doi.org/10.21036/LTPUB10018

Sticky Rebates: Target Rebates Induce Non-Rational Loyalty in Consumers

  • Alexander Morell, Andreas Glöckner and Emanuel V. Towfigh
  • Published in 2009

Chicago

Alexander Morell, Andreas Glöckner and Emanuel V. Towfigh. "Sticky Rebates: Target Rebates Induce Non-Rational Loyalty in Consumers." Unpublished. 2009.