In both the Vickrey and eBay auctions, bidding the reservation price is the optimal strategy within the conventional utility framework. However, in practice, buyers tend to bid less than their reservation prices, and bid multiple times, thus increase their bids, in the course of an auction. In...

Purpose – A loyalty program might influence buyer behavior in several ways. Prior research offers evidence that buyers might increase the frequency of purchases and volume per occasion in a loyalty program; however, the effect on buyers' price tolerance has not been studied before. The aim of...

Preference for a particular future reward over another one may reverse as time passes - a behavior defined as dynamic or time-inconsistency. The general understanding is that time-inconsistency refers to the cases where a larger-later reward is preferred over a smaller-sooner one at the outset,...

Preference between two future outcomes may change over time--a phenomenon labeled as time inconsistency. The term "time inconsistency" is usually used to refer to cases in which a larger-later outcome is preferred over a smaller-sooner one when both are delayed by some time, but then with the...