Reverse pricing is a market mechanism under which a consumer's bid for a product leads to a sale if the bid exceeds a hidden acceptance threshold the seller has set in advance. The seller faces two key decisions in designing such a mechanism: First, he must decide where in the process to collect...

We introduce and test a behavioral model of consumer product search that extends a baseline normative model of sequential search by incorporating non-normative influences that are local in the sense that they reflect consumers' undue sensitivity to recently encountered alternatives. We propose...

Software agents that provide consumers with personalized product recommendations based on individual-level feature-based preference models have been shown to facilitate better consumption choices while dramatically reducing the effort required to make these choices. This article examines why,...

How do people judge the monetary value of objects? One clue is provided by the typical endowment study (D. Kahneman, J. L. Knetsch, amp; R. H. Thaler, 1991), in which participants are randomly given either a good, such as a coffee mug, that they may later sell (quot;sellersquot;) or a choice...

We introduce and test a theory of how the choices consumers make are influenced by skill-based habits of use - i.e., goal-activated automated behaviors that develop through the repeated consumption or use of a particular product. Such habits can explain how consumers become locked in to an...