We examine the indirect impact of price deals, which occurs through the formation of expected future prices, on households' purchase decisions. Two competing learning processes of households' formation of expected future deals that lead to opposite predictions are proposed. Under a...

Laboratory and field experiments show that when choosing among a set of objects, consumers could be subjected to context-dependent preferences and evaluate options by considering both the absolute utilities and their relative standing in the choice set. Using this premise we construct a...

When a firm's competitor releases its product earlier than the firm, many consumers may decide to buy the competitor's product, rather than wait for the firm's product release. Hence, in the absence of product improvement effects or any other late-mover advantages, the firm should benefit by...

We investigate how manufacturers' advertising competition, when advertising has a dynamic impact on the goodwill that affects market demand, interacts with the price competition in a manufacturer-retailer channel. Specifically, we examine the strategic choices made by manufacturers, the role of...

When consumers perceive that a firm's price or markup is unfairly high, they become less willing to purchase that firm's product. Hence, one might intuit that the existence of such fair-minded consumers would tend to induce firms to reduce their prices, lowering their profits and increasing the...

When a firm introduces a product with new features, some consumers may find it difficult to assess their valuations for these new attributes. Their purchase decisions made under such uncertainty may lead to post-purchase regret. It has been experimentally shown that consumers anticipate their...