This paper describes a phenomenon called "locally rational" decision-making, in which the mere presence of information may have dysfunctional consequences even if decision makers do not process the information incorrectly. Using the results from an experiment conducted with a strategic market...

A general model describing individual consuming unit response to an advertising stimulus is developed. The measure of behavior utilized is consumption. In the model, the various effects of advertising on behavior are decomposed. These are price-advertising interactions, transitory or short-run...

Applications of random utility models to scanner data have been widely presented in marketing for the last 20 years. One particular problem with these applications is that they have ignored possible correlations between the independent variables in the deterministic component of utility (price,...

A model which separates the various effects of an advertising experiment on a family's consumption behavior is estimated using consumer panel data. It is determined that there were significant transitory or short-run effects of the advertising, while permanent influences and price-advertising...