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Anticipated Consumption and its Impact on Capital Accumulation and Growth : 'Forward-Looking' vs. 'Backward-Looking' Consumption Reference

Monteiro, Goncalo; Turnovsky, Stephen J. - 2021

It has long been argued that the anticipations of some future event will impact current consumption and well-being in advance of the occurrence of the event itself. This paper introduces this idea of anticipated pleasure into the Ramsey growth model, by assuming that in addition to his own...

Persistent link: https://www.econbiz.de/10013315651

Do Markets Erode Social Responsibility

Bartling, Björn - 2013

This paper studies the stability of socially responsible behavior in markets. We develop a laboratory product market in which low-cost production creates a negative externality for third parties, but where alternative production with higher costs entirely mitigates the externality. Our data...

Persistent link: https://www.econbiz.de/10013072095

A Little Good Is Good Enough : Ethical Consumption, Cheap Excuses, and Moral Self-Licensing

Engel, Jannis - 2017

We explore the role of cheap excuses in product choice. If a product improves upon one ethically relevant dimension, agents may care less about other, completely independent ethical facets of the product. This ‘static moral self-licensing' would extend the logic of the well studied moral...

Persistent link: https://www.econbiz.de/10012955746

Salience, Competition, and Decoy Goods

Herweg, Fabian - 2016

We consider a brand manufacturer who can offer, next to its high-quality product, also a decoy good and faces competition by a competitive fringe that produces low quality. We show that the brand manufacturer optimally provides a decoy good to boost the demand for its main product if consumers'...

Persistent link: https://www.econbiz.de/10012977553

A Model of Reference-Dependent Belief Updating

Maier, Johannes Karl-Georg - 2016

biases generate prior-dependent information preferences, such that agents may avoid information when being unconfident but … going to be used, the model allows us to explore how these predictions change with either individual preferences or the …

Persistent link: https://www.econbiz.de/10012978311

Optimal Liability When Consumers Mispredict Product Usage

Baniak, Andrzej - 2016

We contrast alternative liability rules for social control of product risks when heterogeneous consumers considering purchasing a durable good due to cognitive errors and biases mispredict future product benefits and, thus, the extent of future product usage. Since the expected consumer harm...

Persistent link: https://www.econbiz.de/10012988969

Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets

Schmidt, Klaus M. - 2014

strategy. The experimental results show that outcome-based social preferences and strategic considerations to keep the seller …

Persistent link: https://www.econbiz.de/10013043182

Shop Around and You Pay More

Yan, Ji - 2014

We examine the relationship between the prices paid by households and their shopping patterns measured in terms of shopping frequency and the range of stores visited. We use the TNS data which allows us to control for household heterogeneity. The main contribution of the paper is that we find...

Persistent link: https://www.econbiz.de/10013047319

The Nature of Risk Preferences : Evidence from Insurance Choices

Barseghyan, Levon; Molinari, Francesca; O'Donoghue, Ted; … - 2021

observed and unobserved heterogeneity in preferences. We demonstrate that neither Kőszegi-Rabin loss aversion alone nor Gul …

Persistent link: https://www.econbiz.de/10013315858

Implicit Preferences Inferred from Choice

Cunningham, Tom - 2016

A longstanding distinction in psychology is between implicit and explicit preferences. Implicit preferences are … implicit preferences directly from choices. The necessary assumption is that implicit preferences toward an attribute (e … “revealing” about one's preferences. We discuss reasons why preferences would have this property, advantages and disadvantages of …

Persistent link: https://www.econbiz.de/10012998711