El Programa de investigación Heurísticas y Sesgos" liderado por el economista Amos Tversky (fallecido en 1996) y por el sicólogo ganador del premio Nobel Daniel Kahneman, ha ofrecido desde 1971 una alternativa al Modelo de la Utilidad Esperada en el campo de la toma de decisiones. Las...

Strong growth in disposable income has driven, and is still driving, consumption to unprecedented, but not sustainable levels. To explain the dynamic interplay of needs, need satisfaction, and innovation underlying that growth a behavioral theory of consumption is suggested and discussed with...

There is overwhelming evidence that emotions are a significant determinant of consumer behavior. A customer may get angry if he feels that he is being treated unfairly by his supplier and that may make him more likely to switch to an alternative provider. We model the strategic interaction...

If producers have more information than consumers about goods’ attributes, then they may use non-price (rather than price) adjustment mechanisms and, consequently, the market may reach a new equilibrium even if prices remain sticky. We study a situation where producers adjust the quantity (per...

A growing body of central bank studies show that cash payments are costly for society and that electronic payment instruments are more efficient. This paper tries to find out whether Thaler and Sunstein's libertarian paternalism - as promoted in their 2008 book Nudge - can offer novel ways to...

A study was carried out in the Guntur district of Andhra Pradesh with 366 randomly collected samples to examine the reason behind the popularity and customer patronage for the khadi brand. It was found that the Khadi branded products gained a strong customer base due to the product quality...

Attention has become one of the most scarce—and therefore most valuable—assets in modern economies. Humans now trade vast amounts of attention each day in exchange for an ever-growing variety of digital products and services. The global coronavirus pandemic drastically accelerated the...

Attempts to use evolutionary ideas in finance have often neglected mathematical population genetics. Population genetics provides a natural approach to certain problems in finance that involve the relative wealth that accrues to competing investment strategies. In our model, competing investment...

Although the demand for a framework with endogenous preference change was formulated back in the 1970s, it has remained unfulfilled. In this paper we propose a universal discrete dynamic framework for endogenously changing preferences based on changes in elasticity of substitution σ: almost...

Evidence increasingly points to the importance of reference-dependence in predicting consumer behavior. We utilize detailed data from penny auctions, which first appeared as an internet phenomenon in the late 2000's, to uncover how consumers' prior experiences predict their willingness to try a...