exhibit a decision-making bias of ``relative thinking'': relative price differences affect them even when economic theory …. Sometimes subjects are affected only by relative price differences (``full relative thinking'') and sometimes also by absolute … price differences (``partial relative thinking''). This behavior has implications for various disciplines, and it is …

The article presents an experiment that illustrates a behavior that I denote “relative thinking.” Subjects in the … courses seems to mitigate relative thinking. Several alternative explanations for the observed behavior are suggested and … discussed, but the conclusion is that only the relative thinking explanation can account for the experimental results. Finally …

(“relative thinking”). A linear-city model of two retailers that sell two goods suggests how this consumer behavior affects firm … version adds consumers who want only one good. Relative thinking leads firms to increase the markup on the good with the … higher reference price and decrease the markup on the other good, possibly to a negative markup. Stronger relative thinking …

between the stores should be relevant in this case, but several experiments showed that people exhibit "relative thinking … to relative thinking raises prices and profits and reduces consumer surplus, in both periods. Total welfare is unchanged … subjective transportation costs are used to compute welfare. The main results of the model (firms' response to relative thinking …

("relative thinking"). A linear-city model of two retailers that sell two goods suggests how this consumer behavior affects firm … version adds consumers who want only one good. Relative thinking leads firms to increase the markup on the good with the … higher reference price and decrease the markup on the other good, possibly to a negative markup. Stronger relative thinking …

This article confronts three psychological influences: relative thinking, referent thinking, and the zero-price effect … coincides with expected price, relative thinking is the norm, unless the zero-price effect appears; (2) if actual price … moderately deviates from expected price, referent thinking is superior to any other effects, relative thinking and the zero …