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...

How does an individual’s position within a social distribution influence their desire to take risk? Reference-dependent loss aversion (Kahneman and Tversky, 1979; Koszegi and Rabin, 2006, 2007) adapted to a social distribution setting, suggests that individuals could find risk more appealing at...

Individual contributions to public goods can be framed in absolute or relative metrics. We examine how the framing salience affects the contribution behavior when group members are heterogeneously endowed, based on a reference-dependent theory with salience weights allocated to the absolute or...

Individual contributions to public goods can be framed in absolute or relative metrics. We examine the effects of asymmetric framing and informational feedback on contributions when group members are heterogeneously endowed. We develop a reference-dependent theory in which the absolute or...

Two sellers with differentiated products compete and coordinate in a market by setting price frames first in Stage 1 and price levels later in Stage 2. A consumer's purchase decision depends not only on the difference of the net values, but also on the difference of the price frames. An increase...