A model of rational addiction (RA) with optimal inventories is developed and empirically tested using data on purchases in Japan. If a consumer has information regarding a future price increase, then she may hoard addictive goods; in this case, the optimal inventory period increases with the...

In our increasingly globalized world of shared cultures, we have seen the spread of addictive behaviors such as smoking and various forms of gambling. As these behaviors and subsequent habits continue to spread across borders, it is paramount for policy makers to consider the economics of habit,...

A model of rational addiction (RA) with optimal inventories is developed and empirically tested using data on purchases in Japan. If a consumer has information regarding a future price increase, then she may hoard addictive goods; in this case, the optimal inventory period increases with the...

Research in the field of customer discrimination has received relatively little attention even if the theory of discrimination suggests that customer discrimination may exist in the long run whereas employer and employee discrimination may not. This paper examines customer discrimination...

Research in the field of customer discrimination has received relatively little attention even if the theory of discrimination suggests that customer discrimination may exist in the long run whereas employer and employee discrimination may not. This paper examines customer discrimination...

Our paper conducts laboratory experiments with the sequential search model to test whether participants engage in search activities in line with theoretical predictions derived from the expected utility model or the reference-dependent model, without assuming any specific formulation rule for a...