How do people make choices in a dynamic stochastic environment when they face uncertainty about the return of their choices? The classical approach to this problem is to assume consumers use dynamic programming to obtain the optimal decision rule. However, this approach has two drawbacks. First,...

As information technology improves rapidly and becomes more accessible, it becomes much easier for consumers to gather product in-formation and spend more time thinking about how to get the most out of their budget constraints. This means that consumers are getting “smarter” and more...

We use Swedish data on 330,000 consumer choices of medically equivalent drugs to study the zero-price effect first documented by Shampanier et al. (2007) in experimental settings. The Swedish benefit scheme implies that, during a given month, all consumers face the same price-differences between...

Walmart stores often bring some negative consequences to their neighborhoods. As a result, Walmart frequently faces strong opposition when they plan to launch new stores. Charitable donations could be a way to compensate the local communities and alleviate the opposition. By leveraging our newly...