In Chapter II we investigate consumer behavior when facing target rebates, a rebate practice challenged by antitrust law. In three experiments, we confirm the hypothesis derived from Cumulative Prospect Theory (CPT), that target rebates are likely to create psychological switching costs that can...

In standard economic theory human beings are portrayed as selfish money-maximizing actors. This book investigates the conditions under which people deviate from this prediction and when they are prepared to contribute to the common good in a more altruistic fashion. Based on field experiments...