point and exhibit loss aversion; i.e., their propensity to buy is more negatively affected by prices above the reference … examine how the competitive strategy and profitability of firms are affected by the presence of consumer loss aversion in the … price dimension. Although we assume that consumer loss aversion increases consumer propensity to search for lower prices, we …

. Firms react to this loss of market power by increasing transparency. Furthermore, firms characterized by low corporate …