Showing 1 - 10 of 34
An important characteristic of any offer is the deadline at which it expires. We consider an ultimatum deadline game in which the proposer's decision variable is the offer deadline, while the responder faces a standard finite-horizon search problem. We show that the responder's strategy is...
Persistent link: https://www.econbiz.de/10009191958
Combinatorial auctions--in which bidders can bid on combinations of goods--can increase the economic efficiency of a trade when goods have complementarities. Recent theoretical developments have lessened the computational complexity of these auctions, but the issue of cognitive complexity...
Persistent link: https://www.econbiz.de/10010990581
Studies in the psychology of individual choice have identified numerous cognitive and other bounds on human rationality, often producing systematic errors and biases. Yet for the most part models of aggregate phenomena in management science and economics are not consistent with such...
Persistent link: https://www.econbiz.de/10009191267
Consumers purchase conspicuous goods to satisfy not only material needs but also social needs such as prestige. In an attempt to meet these social needs, producers of conspicuous goods like cars, perfumes, and watches, highlight the exclusivity of their products. In this paper, we propose a...
Persistent link: https://www.econbiz.de/10009191285
We propose a behavioral theory to predict actual ordering behavior in multilocation inventory systems. The theory rests on a well-known stylized fact of human behavior: people's preferences are reference dependent. We incorporate reference dependence into the newsvendor framework by assuming...
Persistent link: https://www.econbiz.de/10009191378
We study a multiperiod bargaining mechanism in which a seller negotiates with a buyer over the price of an indivisible good. It is common knowledge that the good has zero value to the seller. Its value to the buyer is privately known, distributed independently of the seller's value according to...
Persistent link: https://www.econbiz.de/10009191427
Using data generated from laboratory experiments, we test and compare the empirical accuracy of two models that focus on judgment errors associated with processing information from random sequences. We test for regime-shifting beliefs of the type theorized in Barberis et al. (Barberis, N., A....
Persistent link: https://www.econbiz.de/10009191615
Monetary incentives, such as subsidies or bonuses, are often considered as a way to foster contributions to public goods in society and firms. This paper investigates experimentally the effect of private contribution incentives in the presence of a norm enforcement mechanism. Norm enforcement...
Persistent link: https://www.econbiz.de/10009191641
Most business-to-business (B2B) auctions are used to transact large quantities of homogeneous goods, and therefore use multiunit mechanisms. In the B2B context, bidders often have increasing returns to scale, or synergies. We compare two commonly used auction formats for selling multiple...
Persistent link: https://www.econbiz.de/10009191796
Prior studies have shown that individuals are averse to ambiguity in probability. Many decisions are, however, made in market settings where an individual's decision is influenced by decisions of others participating in the market. In this paper, we extend the previous research to evaluate the...
Persistent link: https://www.econbiz.de/10009197342