Research examining the process of individual decision making over time is briefly reviewed. We focus on two major areas of work in choice dynamics: research that has examined how current choices are influenced by the history of previous choices, and newer work examining how choices may be made...

This paper provides a new and complementary explanation for a pricing puzzle for seasonal products, namely, counter-cyclical pricing, drawing on the category-expansion effects of price promotions. Our study emphasizes the seasonal fluctuation in promotion frequency rather than the change in...

This research tests the idea that the trajectories of attention and the accumulation of utility of the options in complex choice tasks are closely aligned, as implied by rational inattention theory. If supported, trajectories of attention would reflect higher-order preference formation...

Customer return rate evolution—whether return rates decrease or increase over the course of the customer-firm relationship—is of great economic importance to retailers. Analyzing the complete purchase and return behavior of about 8,000 customers of an online fashion retailer over seven...

Learning models extend the traditional discrete choice framework by postulating that consumers have incomplete information about product attributes, and that they learn about these attributes over time. In this survey we describe the literature on learning models that has developed over the past...

In this paper, we develop a structural model of household behavior in an environment where there is uncertainty about brand attributes, and both prices and advertising signal brand quality. Four quality signaling mechanisms are at work in the model: 1) price signals quality, 2) advertising...

The workhorse brand choice models in marketing are the multinomial logit (MNL) and nested multinomial logit (NMNL). These models place strong restrictions on how brand share and purchase incidence price elasticities are related. They predict market shares well, but not inter-purchase spell...

Quantitative models in marketing typically focus on the household as the unit of analysis while ignoring the individual family members' behavior and behavioral interactions among household members. However, knowledge of such intra-household behavioral interaction enables marketers to target...