Basu (2006) argues that the prevalence of 99 cent prices in shops can be explained with rational consumers who …

Basu (2006) argues that the prevalence of 99 cent prices in shops can be explained with rational consumers who …

of unobservable quality. The correlation between consumers' valuation of high quality in each dimension is a key …

of unobservable quality. The correlation between consumers' valuation of high quality in each dimension is a key …

The so called flat-rate bias is a well documented phenomenon caused by consumers' desire to be insured against … bias. We solve for the optimal two-part tariff when contracting with loss-averse consumers who are uncertain about their … aversion and if there is enough variation in the consumer's demand. Moreover, if consumers differ with respect to the degree of …

We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their … future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not …

We consider a consumption model that takes into account the valuation and demand uncertainties that consumers face …