PurposeThis paper aims to examine how consumers make choices when they are faced with a fixed set of available options, consisting of both preferred and less-preferred choices, in the domain of food consumption. Specifically, the paper offers a novel perspective to predict repeated choice...

I incorporate expectations-based reference-dependent preferences into a dynamic stochastic model to explain three major life-cycle consumption facts; the intuitions behind these three implications constitute novel connections between recent advances in behavioral economics and prominent ideas in...