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Goldsmith, Kelly; Amir, On - 2013

risk and uncertainty and outlines boundary conditions for this positive effect of uncertainty that have direct practical …

Persistent link: https://www.econbiz.de/10014047787

Risk and Loss Aversion, Price Uncertainty and the Implications for Consumer Search

Soetevent, Adriaan R. - 2016

pay for continued search and the level of price uncertainty depends on her risk preferences. Independent of the current … best price, an increase in price uncertainty encourages continued search when consumers are risk neutral. However, we prove … uncertainty only increases the consumer's willingness to pay (WTP) for continued search if the current best price is sufficiently …

Persistent link: https://www.econbiz.de/10012987583

Risk and loss aversion, price uncertainty and the implications for consumer search

Soetevent, Adriaan R.; Bruzikas, Tadas - 2016

Persistent link: https://www.econbiz.de/10011520488

Cheap-Talk Disclosure of Negative Information and Risk-Averse Buyers

Huh, David Seung; Shapiro, Dmitry - 2021

In this paper, we study the incentives of low-quality sellers to separate them from high-quality sellers. We consider a framework with asymmetric quality information where the only way to communicate quality is via cheap-talk messages. In this framework, any separating strategy pursued by...

Persistent link: https://www.econbiz.de/10013213772

THE FORMATION OF CONSUMER’S PERCEIVED RISK AND RISK AVERSION IN THE CONTEXT OF INNOVATION ADOPTION: A QUALITATIVE RESEARCH

FLOREA, Dorian-Laurentiu - In: Network Intelligence Studies (2014) 4, pp. 223-232

The level of perceived risk is acknowledged to determine the innovation adoption decision. Yet, despite being largely studied in a manifold of disciplines, we still have a poor understanding of its formation from a marketing perspective. This paper offers valuable insight on how perceived risk...

Persistent link: https://www.econbiz.de/10010938114

Travel Choice Inertia : The Joint Role of Risk Aversion and Learning

Chorus, Caspar - 2012

This paper shows how travellers that are faced with a series of risky choices become behaviourally inert due to a combination of risk aversion and learning. Our theoretical analyses complement other studies that conceive inertia as resulting from the wish to save cognitive resources. We first...

Persistent link: https://www.econbiz.de/10013115569

Service Quality Variability and Termination Behavior

Sriram, S. - 2014

We investigate the roles of the level and variability in quality in driving customer retention for a new service. We present model-free evidence that while high average quality helps in retaining customers, high variability leads to higher termination rates. Apart from these main effects, we use...

Persistent link: https://www.econbiz.de/10013063890

Exploring the nature of loss aversion

Johnson, Eric J. (contributor); Gächter, Simon (contributor) - 2006

Loss aversion, the fact that losses have a greater impact than gains, is a fundamental property of behavioral accounts of choice. In this paper, we suggest four possible characterizations of the relative impact of losses and gains: (1) It could be a constant, such as the much cited value of 2,...

Persistent link: https://www.econbiz.de/10003361690

A Survey on Risk-Averse and Robust Revenue Management

Gönsch, Jochen - 2018

Many industries use revenue management to balance uncertain, stochastic demand and inflexible capacity. Popular examples include airlines, hotels, car rentals, retailing, and manufacturing. The classical revenue management approaches considered in theory and practice are based on two...

Persistent link: https://www.econbiz.de/10012933905

Behavioral Aspects of Covered Call Writing : An Empirical Investigation

Hoffmann, Arvid O. I. - 2012

Various explanations for the popularity of covered call option strategies have been explored in the literature. According to Shefrin and Statman [1993], framing and risk aversion can help justifying its attractiveness to investors. Applying prospect theory and hedonic framing, these authors...

Persistent link: https://www.econbiz.de/10013116094