Customer switching costs are an important factor in account-based services such as telecommunications, financial, insurance and brokerage services. In these businesses, existing customers incur significant costs if they switch to another provider. Such costs include physical configuration and...

In this paper, we study strategic capacity rationing when customers have boundedly rational expectations in the sense of anecdotal reasoning. Our S(K) model generalizes the existing literature by allowing customer expectations to be boundedly rational, and reduces to the rational-expectations...

Should employers pay their employees better? Although this question might appear provoking because lowering production costs remains a cornerstone of the contemporary economy, we present new evidence highlighting the benefits a company might reap by paying its employees better. We introduce an...

We study how the duration of paid parental leave affects the accumulation of cognitive skills among children. We use a reform which extended parental leave benefits from 12 to 15 months for Swedish children born after August 1988 to evaluate the effects of prolonged parental leave on children's...

Problem definition: We consider a monopolist firm selling products to strategic customers who may purchase more than one unit of the product. A key feature of multi-unit purchases is that customers do not value the additional purchases as highly as the first unit, implying the results of...