We study the consumer response to the extension of a perishable food item’s shelf life. We develop a theoretical model that describes a utility maximizing consumer planning for an uncertain number of consumption occasions. This model permits prediction of both changes in the purchase and waste...

We estimate willingness to pay (WTP) to operate under two types of contracts - tournaments (Ts) and fixed performance-standard contracts (F). Our results are consistent with the notion that subjects having social preferences for fairness and care about risk. That is, when subjects experience...

Prospect theory has changed the way economists think about decision making under uncertainty – yet after so many years there have been few applications of the theory and those appearing mostly in finance. One of the barriers to applying the prospect theory is that it is not designed to be...

Estimating risk preferences is tricky because controlling for confounding factors is difficult. Omitting or imperfectly controlling for these factors can attribute too much observable behavior to risk aversion and bias estimated preferences. Agents often modify risky decisions in response to...