A long literature has developed econometric methods for estimating individual-consumer-level demand systems that accommodate corner solutions. The increasing access to transaction-level customer purchase histories across a wide array of markets and industries vastly expands the prospect for...

Intertemporal tradeoffs play a key role in many personal decisions and policy questions. We describe models of intertemporal choice, identify empirical regularities in choice, and pose new questions for research. The focus for intertemporal choice research is no longer whether the exponential...

In this chapter, we present theories and applications of reference-dependent preferences. We provide some historical perspective, but also move quickly to the current research frontier, focusing on developments in reference dependence over the last 20 years. We present a number of worked...

In this chapter, we discuss the “lab-in-the-field” methodology, which combines elements of both lab and field experiments in using standardized, validated paradigms from the lab in targeting relevant populations in naturalistic settings. We begin by examining how the methodology has been...

Study of preference reversals originated with cognitive psychologists and has spread to experimental economics because it is directly relevant to the empirical validity of economic theories of decision-making under uncertainty. A preference reversal experiment involves paired choice and...

The results demonstrated in this chapter quite clearly the impact of property rights on the shared expectations about appropriate proposer behavior in both ultimatum and dictator games. If the game is presented as division (which by one definition means literally to separate into equal parts by...

The goal of this paper is to draw some lessons for economic theory from research in psychology, social psychology and, more briefly, in biology, which purports to explain the formation of social preferences. We elicit the basic mechanisms whereby a variety of social preferences are determined in...

Cognitive psychology is best known, to many environmental economists, through the filter of acrimonious debates over the validity of contingent valuation methods (CVM). Psychologists' views on CVM reflect concerns that are deeply rooted in their profession's history and theories. Although...

We review the theory of fairness as it pertains to concretely specified problems of resource allocations. We present punctual notions designed to evaluate how well individuals, or groups, are treated in relation to one another: no-envy, egalitarian-equivalence, individual and collective lower or...

Fuzzy set theory has been explicitly introduced to deal with vagueness and ambiguity. One can also use probability theory or techniques borrowed from philosophical logic. In this chapter, we consider fuzzy preferences and we survey the literature on aggregation of fuzzy preferences. We restrict...