This study investigates context effects in general and the compromise effect in particular. It is argued that earlier research in this area lacks realism, a shortcoming that is a major drawback to research conclusions and stated management implications. The importance of this issue is stressed...

This paper reports an experiment that examines the effects of price complexity on market prices. In my experimental posted-offer markets, each seller offers an identical good to buyers with homogeneous preferences. First, sellers simultaneously decide on the price and the tariff structure of...

This study examines the effects of media market structure on consumer demand and welfare. A differentiated-product model is used to estimate demand for the local media environment, described by the offerings from newspapers, radio, television, the Internet and Smartphone. Results show that the...

The paper investigates whether the premium consumers are willing to pay for an eco-labelled product is driven by selfish or altruistic motives. Using an incentive-compatible experiment with both a within- and a between-subject design, we study the effect on this premium of information stating...

The role of the market in shaping various forms of behavior is perhaps the fundamental issue facing behavioral economics today. This study conducts a field experiment in fish markets of Kolkata, India that are prone to widespread cheating by sellers and examines whether, and to what extent,...

“Certification cobrand strategy” is using a certification seal of approval or a certification brand with the primary brand on a product. A certification cobrand is permitted only when a third party certifies the product has met a specific standard after thorough testing. Drawing on signaling...

Tax avoidance among large multinational corporations has considerably increased in recent years, triggering an intense discussion about how to ensure tax justice. We propose a novel experimental design to incentive-compatibly model the firm-consumer relationship in a consumer goods market. This...

Advertisers and researchers use tools provided by advertising platforms to conduct randomized experiments for testing user responses to creative elements in online ads. Internally valid comparisons between ads require the mix of experimental users exposed to each ad to be similar across all ads....

This study investigates context effects in general and the compromise effect in particular. It is argued that earlier research in this area lacks realism, a shortcoming that is a major drawback to research conclusions and stated management implications. The importance of this issue is stressed...

Recent evidence suggests that nudges, i.e. alterations in the decisional context, can have large effects on decisions and can improve individual and public welfare. This paper presents the results of a controlled experiment that was designed to evaluate not only the effectiveness of a default...