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 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...

We provide evidence that sellers respond to buyers' belief biases in a collective lottery betting market, by adopting sales strategies which cater to believers in the Hot Hand and Gambler's Fallacies. Lottery players on the buyer side tend to avoid buying tickets which are similar to the...

Firms often offer a menu of contracts which vary by fee structures in order to differentiate among different types of consumers. Such contracts require that consumers make estimates of their own future behavior to choose among service contracts whose prices condition on usage. We study the...

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...