now offered by sellers in a number of other industries. We present a theory of FFPs that models them as efforts to take …

alternative Cumulative Prospect Theory (CPT), both theoretically and experimentally. CPT predicts that loyalty rebates could harm … task, participants decided whether or not to enter a loyalty rebate scheme and to continue buying within that scheme …. Meeting the condition triggering the rebate was uncertain. Loyalty rebates considerably reduced the likelihood that …