We analyze a dynamic pricing problem where consumer's purchase decisions are a ected by representative past prices, summarized in a reference price. We propose a new, behaviorally motivated reference price mechanism, based on the peak-end memory model proposed by Kahneman et al. (1993). Speci...

We evaluate the quality of beliefs elicited from online respondents, comparing several characteristics of two widely used elicitation mechanisms (the Binarized Scoring Rule - BSR - and a stochastic variation of the Becker-deGroot-Marshak mechanism -BDM) against a flat fee baseline for a variety...

An agent wants to derive her belief over outcomes based on past observations collected in her database (memory). There is well establish evidence in the psychology and marketing literature that agents consistently fail (or choose not) to process all available information. An agent might be...