The article presents a model that analyzes the optimal strategy of multi-product firms when consumers are affected by reference prices. Generally, the stronger the consideration of reference prices is, the more intensified the competition is and the lower are the prices and profits. In some...

Lying and deceiving is present not only in adults but also among children and teenagers and represents an economically and psychological relevant behavioral trait. It is therefore surprising that evidence from economic experiments on deceptive behavior in children and teenagers is scarce. In...

The unskilled-and-unaware problem describes a negative relationship between one’s skill level and self-assessment bias: the less skilled are, on average, more unaware of the absolute and relative quality of their performance. In this paper, we study whether, and to what extent, the...