The purpose of this paper is to propose a nonparametric interest rate term structure model and investigate its implications on term structure dynamics and prices of interest rate derivative securities. The nonparametric spot interest rate process is estimated from the observed short-term...

The paper considers a (static) portfolio system that satisfies adding-up contraints and the gross substitution theorem. The paper shows the relationship of the two conditions to the weak dominant diagonal property of the matrix of interest rate elasticities. This enables to investigate the...

Copycat brands try to gain acceptance from consumers by imitating the trade dress of a leading, incumbent brand, and a crucial question thus is which conditions determine the perceived similarity between a copycat and a leading brand. Two experimental studies, across different product categories...

Rising levels of advertising competition have made it increasingly difficult to attract and hold consumers' attention and to establish strong memory traces for the advertised brand. A common communication strategy to break through this competitive clutter is to increase ad originality. However,...

This study investigates consumers' attention to retail feature ads and proposes a method to optimize the design of the ads. Utilizing a large dataset of consumers' attention to over 1,100 individual feature ads collected with eye-tracking technology, we analyze the effects of the five key design...

Consumers are willing to pay a premium for products that elicit their envy. The more people compared themselves to a superior other, the higher the envy premium was. Yet, the emotion envy and not the upward comparison drove the final effects. The envy premium only emerged for a desirable product...

People need to allocate their limited cognitive resources to current and future tasks. We provide evidence that anticipating the resource demands of a future task creates a "get ready mind-set" that mobilizes these resources. However, the mobilized resources for the future task can carry over to...

We provide the theory of visual attention and eye-movements that serves as a basis for evaluating eye-tracking research and for discussing salient and emerging issues in visual marketing. Motivated from its rising importance in marketing practice and its potential for theoretical contribution,...

This research is the first to test the hypothesis that consumers face a “material trap” in which materialism fosters social isolation which in turn reinforces materialism. It provides evidence that materialism and loneliness are engaged in bidirectional relationships over time. Importantly,...

Copycat brands try to entice consumers by imitating the trade-dress of leading brands. Recent research suggests that preferences for copycat brands relative to more differentiated brands are generally lower. That is, consumers tend to dislike such “imitation” brands, because of psychological...