Consumers' optimal consumption strategy in anticipation of price variations is to equalize the marginal utility of income across different price regimes. Since the marginal utility of income is positively related to the price of a Giffen good, consumers will adopt a consumption plan (through...

To overcome strong prior beliefs, strong evidence to the contrary is needed. If a person is predisposed to choosing a certain action, the advice from an advisor who sets a low threshold for recommending the alternative action is not of much use. The preference for like-minded advisors who supply...