The article presents a theory that I denote quot;Relative Thinking Theory,quot; which claims that people consider relative differences and not only absolute differences when making various economics decisions, even in those cases where the rational model dictates that people should consider only...

Previous studies about the academic publishing process consider the publication delay as starting from the submission to the publishing journal. This ignores the potential delay caused by rejections received from previous journals. Knowing how many times papers are submitted prior to publication...

Recently many editors try to reduce the turnaround times of academic journals. Shorter turnaround times, however, will induce many additional submissions of low-quality papers, increasing significantly the workload of editors and referees, and the number of rejections prior to publication. I...

Rewards for publications in good economics journals are very high, while submission fees and other monetary costs associated with submitting an existing manuscript are low. Consequently, the editorial delay (especially the first response time - the time until the first editorial decision), by...

Agency theory suggests that high pay-performance sensitivity (PPS) of CEO's compensation is an important motivation mechanism to the CEO to improve corporate performance. We develop a simple model that suggests that reverse causality should also be considered. Specifically, our model predicts...

Experimental evidence suggests that consumers are affected by reference prices and by relative price differences ("relative thinking"). A linear-city model of two retailers that sell two goods suggests how this consumer behavior affects firm strategy and market outcomes. A simple model analyzes...

"The first-response time (henceforth FRT) of economics journals has increased over the last four decades from 2 months to 3-6 months. The optimal FRT, however, is not zero because a longer FRT deters submissions of mediocre papers to good journals and consequently saves valuable time of referees...

Consumers often have to decide whether to make an effort and go to a remote store rather than a nearby one in order to obtain a lower price. Only the absolute price difference between the stores should be relevant in this case, but several experiments showed that people exhibit "relative...