This article surveys the theoretical and empirical literature on the economics of advertising during the last decade The survey notes several promising advances in theoretical modeling of the role of advertising in consumer choice and social welfare Numerous empirical investigations of food and...

The main goal of this study is to gain a better understanding of the buying behavior of wine consumers in Portugal. More specifically, the study identifies extrinsic attributes that influence wine purchase choices in a retail store, crossing-tabulating the results with six classification...

The current study provides the first experimental test of the compromise effect, i.e. the tendency to choose middle options, in a naturally occurring setting. Simultaneously, I propose and evaluate a novel nudge intended to stimulate active choice - the (un)compromise effect - a compromise...

Revealed Preference offers nonparametric tests for whether consumption observations can be rationalized by a utility function. If a consumer is inconsistent with GARP, we might need a measure for the severity of inconsistency. One widely used measure is the Afriat efficiency index (AEI). We...

Purpose of this paperMuch of the literature on consumer empowerment focuses on consumers’ efforts toregain control of their consumption processes from suppliers. Our purpose is to arguethat many suppliers achieve success by trying hard to empower consumers. Themechanism by which this takes...

Consumer choice of services that are financed by a third party may improve the matching of consumers and providers, and spur competition over quality dimensions relevant to consumers. However, in markets characterized by information frictions and switching costs, the gains from choice may fail...

We offer a rationalization of the weak axiom of revealed preference (WARP) and of the weak generalized axiom of revealed preference (WGARP) for both finite and infinite data sets of consumer choice. We call it maximin rationalization, in which each pairwise choice is associated with a local...

In this study, we shed light on the unexplored potential of customer co-design in a mass customization (MC) setting to contribute to the promotion of sustainable consumption. We theoretically derive and empirically test several opportunities for companies to improve sustainable consumption and...

Recent healthcare reforms have sought to increase efficiency by introducing managed care (MC) while respecting consumer preferences by admitting choice between MC and conventional care. This article proposes an institutional change designed to let German consumers choose between the two settings...