In this paper we explore the underlying consumer heterogeneity in competitive markets for subscription-based IT services that exhibit network effects. Insights into consumer heterogeneity with respect to a given service are paramount in forecasting future subscriptions, understanding the impact...

Bayesian consumers infer that hidden add-on prices (e.g. the cost of ink for a printer) are likely to be high prices. If consumers are Bayesian, firms will not shroud information in equilibrium. However, shrouding may occur in an economy with some myopic (or unaware) consumers. Such shrouding...

Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...

Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...

We analyze the problem that enterprises face when having to decide on the most effective way to advertise several items belonging to their inventories within the company's webpages. We show that the ability to arbitrarily partition a website among items leads to a comparative advantage among...

This research demonstrates that decision makers’ time perspective — a cognitive, temporal bias that leads people to overemphasize the past, present, or future in their decision making — systematically influences self-reported behavioral intentions and thus intention-behavior consistency...

In real world market, there are two different types of consumer choice, choice between commodities that satisfy the same need, and, choice between commodities that satisfy different needs. The two types of consumer choice are different in consumer choice logic. Present consumer theory didn’t...

Objective – Retailers often impose strict returning policies to control product returns without understanding the consumers' returned intention in the first place. Past research has shown that product return policies have little effect on product returns. As such, the aim of this research is...

Platforms are typically digital markets although platforms can designate markets generally. The economic analysis of markets and platforms are one and the same. Advances in the study of markets and platforms both contribute to economics. The discussion shows that the platform model combines and...

We use restaurant food delivery sales tick data to investigate how prices reflect demand, allocate resources and impact profitability. We find that real-time demand can be used to accurately predict future demand over a short time frame, and that dynamic prices based on it reduce demand...