Previous research works on corporate social responsibility (CSR) generally acknowledge that consumers develop more favourable perceptions of responsible firms. Yet next to nothing has been written on the effects of the firm's societal communication and its characteristics on brand equity. In...

This paper develops and tests a model of sequential decision making where a first stage of ranking a set of alternatives is followed by a second stage of determining the value of these same alternatives. The model assumes a boundedly rational Bayesian decision maker who is uncertain about...

How does users’ freedom of choice, or the lack thereof, affect interface preferences? The research reported in this article approaches this question from two theoretical perspectives. The first of these argues that an interface with a dominant market share benefits from the absence of...

The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a theoretical framework to identify the factors that...

An experiment conducted to examine the effects of different discount formats on consumer purchases is reported. Participants made a series of purchase decisions for chocolate bars given (a) “rebates” from the listed price, (b) “matching” quantities of chocolates for each bar purchased,...

It is shown how to test revealed preference data on choices under uncertainty for consistency with first and second order stochastic dominance (FSD or SSD). The axiom derived for SSD is a necessary and sufficient condition for risk aversion. If an investor is risk averse, stochastic dominance...

One of the most widely accepted notions in consumer behavior is that word-of-mouth (WOM) communication is one of the ways in which this influence manifests itself in shaping consumer's attitudes and behaviors. The WOM can have an important role from a managerial standpoint. The widespread...

The purpose of Plott and Zeiler (2005) — henceforth, PZ — was to investigate whether previously published experiments using consumption goods such as mugs and candy bars to measure gaps between willingness to pay (WTP) and willingness- to-accept (WTA) support endowment effect theory (EET)....

Temptation and self-control in intertemporal choice environments are receiving increasing attention in the theoretical economics literature. Nevertheless, there remains a scarcity of empirical evidence from controlled environments informing behavior under repeated temptations. This is...

This paper studies a model of reference-dependent choice from sets of options grouped into categories. The proposed model is consistent with experimental evidence documenting context effects in a variety of choice situations. In our model, the reference point for any given category is...