In the market where inattentive buyers can fail to notice some feasible choices, the key role of marketing is to make … buyers aware of products. However, the effective marketing strategy is often subtle since marketing tactics can make buyers … cautious. This paper provides a framework to analyze an effective marketing strategy to persuade an inattentive buyer in an …

This experimental study, first, compares the individual valuations of two risk reduction mechanisms: self-insurance and … valuations when loss amounts are known. results confirm that there exists no "framing effect" due to the two risk reduction …

behaviour under risk. We find that both, investment horizons and feedback frequency contribute almost equally to the effects of …

We introduce a new method of varying the risk that bidders face in first-price private value auctions. We find that … decreasing bidders' risk significantly reduces the degree of overbidding relative to the risk-neutral Bayesian-Nash equilibrium … prediction. This implies that risk affects bidding behavior as generally expected in auction theory. While resolving a long …

whether this type of behavior persists when risk comes into play. I devise an experiment which sheds light on the … interrelation of risk and social preferences by measuring (1) individual risk preferences, (2) interpersonal risk preferences, and … (3) social preferences under certainty. The results reveal that a large share of subjects choose to accept more risk or …

contributions. This paper presents experimental results illustrating that the effects of risk and uncertainty depend on the employed … efficiency gains, the presence of risk and uncertainty about the public good's value is not detrimental to cooperation. This … ?nding casts doubt on the hypothesis that risk and uncertainty, per se, weaken people's willingness to contribute. …