Researchers and the investment community continually debate whether consumers have the requisite acumen regarding financial instruments. We find that consumers have intuitive knowledge about uncertainty, and they intend to alleviate that uncertainty through a relatively sophisticated financial...

Firms use large majorities of their budgets on sales promotions such as coupons and sales events. Many of these sales promotions are framed as “Friends & Family” or “Preferred Customer.” Which of these frames is more effective, when, and why? We answer these questions building on...