Several behavioral models assume that choice over multi-attribute goods is systematically affected by the ranges of attribute values. Two recurring principles in this literature are contrast, whereby attributes with larger ranges attract attention and are therefore overweighted, and...

Several behavioral models assume that choice over multi-attribute goods is systematically affected by the ranges of attribute values. Two recurring principles in this literature are contrast, whereby attributes with larger ranges attract attention and are therefore overweighted, and...

Manufacturers frequently resist heavy discounting of their products by retailers, especially when they are used as so-called loss leaders. Since low prices should increase demand and manufacturers could simply refuse to fund deep price promotions, such resistance is puzzling at first sight. We...

How should firms optimally choose prices and promotional strategies and how should they position their products when consumers are "relative thinkers"? We provide answers in a model that extends the seminal contributions of Varian (1980) and Narasimhan (1988) and derive both managerial...

How should firms optimally choose prices and promotional strategies and how should they position their products when consumers are "relative thinkers"? We provide answers in a model that extends the seminal contributions of Varian (1980) and Narasimhan (1988) and derive both managerial...