This article examines systematic differences in people's spending behavior when using foreign currencies. Rather than overspend or underspend in general, we show that individuals' valuation of a product in an unfamiliar foreign currency is biased toward its nominal value--its face value--with...

Many consumer price promotions (including new product launches) offer a product for free or for a low, discounted price along with a required purchase. This research demonstrates that consumers’ willingness to pay for the product after the promotion is retracted is higher when it was offered...

Manufacturers and distributors in marketing channels commonly establish prices, margins, and other trade terms through negotiations. These negotiations have significant impact on channel members' profit streams over the duration of the business relationship. We consider a situation where a...