Purpose – This article aims to investigate whether intermediaries reduce loss aversion in the context of a high‐involvement non‐frequently purchased hedonic product (tourism packages). Design/methodology/approach – The study incorporates the reference‐dependent model into a multinomial...

Purpose Prospect theory is now widely accepted as the dominant model of choice under risk, but has not been fully incorporated into applied research because of uncertainty about how to include population-level parameter estimates. The purpose of this paper is to characterize heterogeneity across...

Purpose The purpose of this paper is to investigate if Bowman’s Paradox (negative association between risk and return) is caused by managerial myopia. It also attempts to disentangle whether results are more consistent with one or more potential explanations. Design/methodology/approach The...

We examine the traditional deterrence game between Challenger and Defender. We treat two variations of the game – the complete information game and the one-sided information game where the first mover, Challenger, is the uncertain player. We employ sequential decision theory to analyze the...

Purpose The purpose of this study is to invoke prospect theory to construct an empirical framework to predict idiosyncratic risk, and argue that when a firm performs better than its benchmarks, the firm tends to play safe by avoiding firm-specific risk to maintain its satisfactory performance...

Purpose – In light of the challenge to attract skilled employees in times of dwindling labour supply, the purpose of this paper is to investigate how motivational person-job fit influences the preference for a job. Using a model based on prospect theory, person-job fit is operationalised on...

Purpose – The purpose of this paper is to examine semi-strong market efficiency by observing the behavioral finance implications of Jim Cramer’s recommendations in bull vs bear markets. The authors extend the literature by analyzing investor reaction through the lenses of prospect theory,...

Purpose The purpose of this paper is to focus on adoption of certified management standards, specifically public standards. Such standards play an increasingly important role in today’s business environment. However, to generate adoption benefits, they must be first widely accepted – a...

Purpose The purpose of this paper is to contribute toward the current limited understanding of service bundles by investigating how purchasers of combined product-service bundles (bundle customers) differ from those purchasing a product and associated service separately (non-bundle customers)....

Purpose – This study aims to extend prior studies by examining the mediation effects of sticker shock on the relationship between price discount and buying intention. Sticker shock refers to the discrepancy between a brand’s sale price (SP) and an individual’s internal reference price...