This paper describes a phenomenon called "locally rational" decision-making, in which the mere presence of information may have dysfunctional consequences even if decision makers do not process the information incorrectly. Using the results from an experiment conducted with a strategic market...

The expectation formation process has been extensively studied by economists, particularly for macroeconomic variables. However, no prior research has examined how expectations are formed and used in the context of marketing forecasting. In this paper, we use data from a simulated competitive...