How do rational firms respond to consumer biases? In this paper, we analyze the profit-maximizing contract design of firms if consumers have time-inconsistent preferences and are partially naive about it. We consider markets for two types of goods: goods with immediate costs and delayed benefits...

This paper develops a conceptual framework that can explain why economic development goes along with increases in body weight and obesity rates. We first introduce the concept of novelty consumption, which refers to an increase in food availability due to trade or innovation. Then we study how...

This paper develops a conceptual framework that can explain why economic development goes along with increases in body weight and obesity rates. We first introduce the concept of novelty consumption, which refers to an increase in food availability due to trade or innovation. Then we study how...

This paper investigates time inconsistencies in food consumption based on a field experiment at a college canteen where participants repeatedly select and consume lunch menus. The design features a convex non-monetary budget in a natural environment and satisfies the consume-on-receipt...

Some food items that are commonly considered unhealthy also tend to elicit impulsive responses. The pain of paying in cash can curb impulsive urges to purchase such unhealthy food products. Credit card payments, in contrast, are relatively painless and weaken impulse control. Consequently,...

From 1998 to 2009 I find that the average time between U.S. households' grocery shopping trips has steadily increased from 4.7 to 6.2 days, and from 1998 to 2006 per capita monthly consumption of fresh fruits and vegetables has decreased from 130 to 112 oz. To understand these changes, a dynamic...

Households have decreased their grocery shopping frequency from once every 4.7 days in 1998 to once every 6.3 days in 2009. To understand this change, an optimal control model is developed of a utility maximizing household that chooses when to shop, how much to purchase, and their piece wise...