This paper employs micro-level data to identify consumers’ loss aversion when choosing between two products that share the same price and observable product characteristics. We focus on the post-sale observations where one product experienced a sale, but the other stayed unchanged. The paper...

Retailers of iconic products commonly implement premium advance selling, which typically triggers regret in consumers. A premium advance selling strategy is centered around differences in pricing and capacity rationing between two selling periods. We develop a decision-theoretic model to capture...