Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...

Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...

Many economic decisions involve a substantial amount of uncertainty, and therefore crucially depend on how individuals process probabilistic information. In this paper, we investigate the capability for probability judgment in a representative sample of the German population. Our results show...

We revisit the classical result that financing a pure public good through taxation of private consumption is inefficient. To this standard setup we add a consumption contest in which consumers can win a prize. We show that an appropriately chosen contest — which we call a ‘tax lottery' —...

We revisit the classical result that financing a pure public good through taxation of private consumption is inefficient. To this standard setup we add a consumption contest in which consumers can win a prize. We show that an appropriately chosen contest - which we call a 'tax lottery' - can...

We investigate consumers’ preference for scarcity in a real market with large stakes. We find evidence that the elasticity of demand for scarcity is constant across prices ranging from $50 to nearly $4 million, that preference for scarcity follows a power law, and that it explains 95% of the...

This research demonstrates that decision makers’ time perspective — a cognitive, temporal bias that leads people to overemphasize the past, present, or future in their decision making — systematically influences self-reported behavioral intentions and thus intention-behavior consistency...

In real world market, there are two different types of consumer choice, choice between commodities that satisfy the same need, and, choice between commodities that satisfy different needs. The two types of consumer choice are different in consumer choice logic. Present consumer theory didn’t...

Objective – Retailers often impose strict returning policies to control product returns without understanding the consumers' returned intention in the first place. Past research has shown that product return policies have little effect on product returns. As such, the aim of this research is...

Platforms are typically digital markets although platforms can designate markets generally. The economic analysis of markets and platforms are one and the same. Advances in the study of markets and platforms both contribute to economics. The discussion shows that the platform model combines and...