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We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...
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In this paper we model the adjustment process of European Union Allowance(EUA) prices to the releases of announcements at high-frequency controlling forintraday periodicity, volatility clustering and volatility persistence. We ¯nd thatthe high-frequency EUA price dynamics are very well captured...
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analysis which relies on pricingdata instead of choice data. Since pricing data lead in many cases to a different ordering … comparative performance of the single theories differs significantly under these threetypes of pricing data. …
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We study the optimal pricing problem of a firm facing customers with limited attention and capability to process … firm's price optimization problem and characterize the pricing and revenue implications of customer's limited attention. We … heterogeneity, and study extensions such as multiple products, competition, and joint inventory and pricing decisions. We also show …
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