Purpose – The objective of this paper is to propose and empirically test a potential mechanism for how consumers form reference prices. The proposed peak‐end rule of reference price formation says that reference prices are formed as a weighted average of the highest observed price and the...

This paper introduces dynamics in the RD to innovation and innovation to productivity relationships, which have mostly been estimated on cross-sectional data. It considers four nonlinear dynamic simultaneous equations models that include individual effects and idiosyncratic errors correlated...

The present paper develops a simple asymmetrical informational model that allows us to understand the individual´s willingness to participate in a strike. We develop and compare two signaling models of strikes: in one, firms are able to monitor and enforce hours and offer different workweeks to...

The present paper aims at explaining strike incidence, measured by the proportion of strikers observed in each sector, and strike severeness, proxied by a measure of mean strike hours lost per worker in each industry. We find that Industry concentration dissuades striking – more concentrated...

This paper revisits the data set collected by Toro, Alvis and Arellano (2005) in order to evaluate three main models in transportation: probit, conditional logit, and the nested logit. The results show that the advantages of other transportation modes over buses are their lower travel and...

This study proposes the use of semiparametric varying-coefficient methods to estimate the preference heterogeneity within stated choice data. Semiparametric varying-coefficient methods have the potential to overcome the disadvantages of conventional random parameter models and latent class...

We propose a structural model to study the effect of online product reviews on consumer purchases of experiential products. Such purchases are characterized by limited repeat purchase behavior of the same product item (such as a book title) but significant past usage experience with other...

We present an empirical model aimed at testing the relative income hypothesis and the effect of deprivation relative to mean income on subjective well-being. The main concern is to deal with subjective panel data in an ordered response model where error homoskedasticity is not assumed. A...