We present a new recommender system developed for the Russian interactive radio network FMhost. The system aims to improve the quality of this service; it is designed specifically to deal with small datasets, overcoming the shortage of data on observed user behavior. The underlying model combines...

In this article, the authors offer a methodology to decompose the effects of price promotions into brand switching, stockpiling, and change in consumption by explicitly allowing for consumer heterogeneity in brand preferences and consumption needs. They develop a dynamic structural model of a...

We provide a revealed preference analysis of the rational addiction model. The revealed preference approach avoids the need to impose an, a priori unverifiable, functional form on the underlying utility function. Our results extend the previously established revealed preference characterizations...

This paper studies the concavity of the consumption function of a habit-forming consumer with convex absolute risk tolerance. Habit formation is incorporated into a finite-horizon consumption-saving model of Carroll and Kimball (1996). I derive a condition under which the consumption function is...

The widely-used estimator of Berry, Levinsohn and Pakes (1995) produces estimates of consumer preferences from a discrete-choice demand model with random coefficients, market-level demand shocks and endogenous prices. We derive numerical theory results characterizing the properties of the nested...

This paper deals with the pricing of financial structured products. We examine French retail structured products,“OPCVM à Formule”, from a sample including about 650 funds. First, we detail the main characteristics of this market and propose a simplified typology of all these products....

The main goal of this research is to analyze Italian tourists' behaviors on the basis of statistical surveys on households, life conditions, incomes, consumptions, travels and vacation. Rough Sets Theory, a Data Mining technique that can easily manage also categorical variables, is suitable for...

Cognitive dissonance is one of the most influential theories in psychology, and its oldest experiential realization is choice-induced dissonance. In contrast to the economic approach of assuming a person's choices reveal their preferences, psychologists have claimed since 1956 that people alter...

Since the advent of the discounted utility (DU) model economists have thought about intertemporal choice in very specific terms. DU assumes that people make explicit tradeoffs between costs and benefits occurring at different points in time. While this explicit tradeoff perspective is simple and...

So far, if one wished to analyse economic markets in all their complexity - i.e. by incorporating all information regarding firm and consumer behavior available from the fields of economics, marketing, consumer research, competitive strategy, and business analysis - she had to use formulas with...