Evidence increasingly points to the importance of reference-dependence in predicting consumer behavior. We utilize detailed data from penny auctions, which first appeared as an internet phenomenon in the late 2000's, to uncover how consumers' prior experiences predict their willingness to try a...

When interacting with others, individuals are often known to adjust their behavior based on the gender characteristics of the other person. Information about another person’s gender tends to influence both behavior towards that individual, as well as expectations about that individual’s...

How do environmental conditions influence the purchase of critical illness insurance, and why? The mechanism for any potential relationship between them has substantial welfare and policy implications. Prior literature has found a positive relationship between supplementary health insurance and...

The development of internet technology has reshaped the market structure for many products. We study the price competition problem between online stores and offline stores, by allowing consumers' preferences to be more favorable towards online shopping. We consider 3 scenarios: (1) market with...

In markets where duopolists supply differentiated products with certain degree of complementarity, not only can each consumer choose to buy one unit from a particular seller (single-purchase), the consumer may also choose to buy from different sellers simultaneously (multi-purchase) for brand...

The strength model proposes that self-control is a constrained resource whose effectiveness tends to dwindle when an individual attempts to resist multiple sources of temptation at a time. We develop an economic framework for the strength model, and test its consequences in the field by...