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...

Purchasing products that consumers have not used before (e.g., baby stroller for first time parents or a new product like an iPad) can be a challenge for consumers. In this article, the authors examine how mentally simulating two specific aspects of a product - the product usage process vs. the...