This article presents a simple economic model to assess consumers' valuation of safety features. In particular, we model the benefit from safety as the reduction in the probability of death and the associated economic value of this reduction. We then apply this theoretical model to investigate...

On the basis of previous reviews of the perceived-risk concept, a model of risk perception and its effects on consumers' risk-handling behavior is formulated. Hypotheses derived from this model are empirically tested and indicate that, for the setting studied (women purchasing a dress), the...

This article illustrates how the compromise effect alters consumers' selection of soft drinks. Using three within-subject studies, we show that extremeness aversion and price insensitivity cause consumers to increase their consumption when the smallest drink size is dropped or when a larger...