When a consumer purchases an item, the presumption is that the benefit obtained from it exceeds the price paid—we can think of this difference as the consumer profit. How do consumers calculate this profit, especially when they do not immediately consume the purchased item? This technical note...

We introduce range and sign dependent utility, an integrative behavioral model for uncertain cash flows. For gambles played today, the model can be seen as an extension of original prospect theory based on range, rather than rank. For single future payouts, the model agrees with hyperbolic...

The traditional decision-analytic approach to incorporate risk aversion into project evaluation is to calculate the expected utility of initial capital plus net present value. The choice of discount rate, and the convergence with the traditional finance approach, have always been a question. Our...

Present equivalents of future payouts elicited from individuals exhibit a high variability in the underlying discount rate, suggesting that multiple factors influence discounting. One such factor --- shown to be robust --- is the magnitude effect, whereby small future payouts are discounted more...

We introduce range utility theory, an integrative behavioral model for uncertain cash flows. The model modifies rank dependent utility, by replacing rank principles with range principles, and extends the domain to time. For gambles played in the future, the model generalizes the probability and...

Several consumer choice models account for anomalies in consumption-payment decisions. We consider four models, namely, Prelec and Loewenstein 1998 double-entry model, Thaler 1985 double-comparison model, Baucells and Hwang 2014 reference price adaptation model, and Köszegi and Rabin 2006...

Problem Definition: Project managers are responsible for setting and then revising projects' goals. As uncertainty related to project performance is resolved, a project manager is tasked with comparing ongoing costs, and potentially achieved scope, to a baseline plan. We question whether project...