Dertwinkel-Kalt, Markus; Köster, Mats; Peiseler, Florian - 2018
In many markets supply contracts include a series of small, regular payments made by consumers and a single, large … bonus contracts, which builds on a model of attentional focusing. Our main result identifies market conditions under which … bonus contracts should be observed: while a monopolist pays a bonus to consumers, if at all, only for low-value goods, firms …