Using a framework that distinguishes short-term consumer preferences, individual reflective preferences and political preferences, we discuss from a constitutional economics perspective whether individuals find it in their common constitutional interest to endow representatives and bureaucrats...

Using a framework that distinguishes short-term consumer preferences, individual reflective preferences and political preferences, we discuss from a constitutional economics perspective whether individuals find it in their common constitutional interest to endow representatives and bureaucrats...

When firms' shrouding of charges, as in Gabaix and Laibson (2006), meets with consumers' salient thinking, as in Bordalo et al. (2013), this can have severe welfare implications. The ensuing excessive competition for headline prices tends to inefficiently bias consumers' choice towards...

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...

Moderne Marktordnungen schützen den Verbraucher vor Schäden und sichern den Leistungswettbewerb und die Funktionsfähigkeit von Märkten. Wettbewerbsorientierte Verbraucherpolitik und verbraucherorientierte Wettbewerbspolitik ergänzen sich dabei. Die Verhaltensökonomik zeigt allerdings, dass...

Moderne Marktordnungen schützen den Verbraucher vor Schäden und sichern den Leistungswettbewerb und die Funktionsfähigkeit von Märkten. Wettbewerbsorientierte Verbraucherpolitik und verbraucherorientierte Wettbewerbspolitik ergänzen sich dabei. Die Verhaltensökonomik zeigt allerdings, dass...

For many goods and services, such as cellular-phone service and debit-card transactions, the price of the next unit of service depends on past usage. As a result, consumers who are inattentive to their past usage but are aware of contract terms may remain uncertain about the price of the next...

Beim vierten Verbraucherforschungsforum an der Zeppelin Universität in Friedrichshafen entwickelten Wissenschaftler aus verschiedenen Disziplinen gemeinsam eine Agenda für die Verbraucherforschung in der digitalen Welt. Im Zeitgespräch dokumentieren wir die Impulsreferate zu wesentlichen...

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,...

Credit card companies charge an interchange fee for each transaction, and almost half of this fee is returned to consumers in the form of a reward or perk program. Among credit card users who do not use cards for borrowing (convenience users), rewards are a means to negotiate the implicit price...