This study investigates context effects in general and the compromise effect in particular. It is argued that earlier research in this area lacks realism, a shortcoming that is a major drawback to research conclusions and stated management implications. The importance of this issue is stressed...

Independent of the left-right model of ideological structure, genetically modified organisms (GMOs) in food and agriculture are resented across the political spectrum in Switzerland. In the absence of any real experience with genetically modified (GM) food but faced with continuous exposure to...

Standard form contracts, or contracts of adhesion, appear to provide contradictory evidence for the operation of bargaining in the markets where they are common. Non-negotiated contract terms that seemingly benefit sellers to the detriment of buyers call into question the efficiency implications...

Poor people have, on average, a higher marginal propensity to consume. One (out of many) possible explanations for this is that poverty affects impatience. This would have important implications for monetary and fiscal policy. While some macroeconomists simply assume lower individual discount...

Consumer switching costs cause the market demand of consumers who already bought a supplier's product to be less elastic while they simultaneously increase competition for new consumers. I study the effect of this twofold pricing incentive on firms' price setting behavior in a 2x2 factorial...

This paper reports an experiment that examines the effects of price complexity on market prices. In my experimental posted-offer markets, each seller offers an identical good to buyers with homogeneous preferences. First, sellers simultaneously decide on the price and the tariff structure of...

This study examines the effects of media market structure on consumer demand and welfare. A differentiated-product model is used to estimate demand for the local media environment, described by the offerings from newspapers, radio, television, the Internet and Smartphone. Results show that the...

The paper investigates whether the premium consumers are willing to pay for an eco-labelled product is driven by selfish or altruistic motives. Using an incentive-compatible experiment with both a within- and a between-subject design, we study the effect on this premium of information stating...

The role of the market in shaping various forms of behavior is perhaps the fundamental issue facing behavioral economics today. This study conducts a field experiment in fish markets of Kolkata, India that are prone to widespread cheating by sellers and examines whether, and to what extent,...

“Certification cobrand strategy” is using a certification seal of approval or a certification brand with the primary brand on a product. A certification cobrand is permitted only when a third party certifies the product has met a specific standard after thorough testing. Drawing on signaling...