We provide a simple behavioral explanation of why manufacturers frequently announce non-binding suggested retail prices for their products. Our model is based on the assumption that once the actual price for a product exceeds its suggested retail price, the marginal propensity to consume...

We analyze vertical relationships between a manufacturer and competing retailers when consumers have reference-dependent preferences. Consumers adopt the manufacturer’s suggested retail price as their reference price and perceive losses when purchasing above the suggested price and gains...

`Judgement aggregation' is a model of social choice where the space of social alternatives is the set of consistent truth-valuations (`judgements') on a family of logically interconnected propositions. It is well-known that propositionwise majority voting can yield logically inconsistent...

`Judgement aggregation' is a model of social choice where the space of social alternatives is the set of consistent truth-valuations (`judgements') on a family of logically interconnected propositions. It is well-known that propositionwise majority voting can yield logically inconsistent...

Experimental studies have shown that trust and reciprocity are effective in increasing efficiency when complete contracting is infeasible. One example is the study by Berg et al. (1995) of the investment game. In this game the person who receives the investment is the one who may reward the...

Which is the best, impartially most plausible consensus view to serve as the basis of democratic group decision when voters disagree? Assuming that the judgment aggregation problem can be framed as a matter of judging a set of binary propositions (“issues”), we develop a multi-issue...

A judgement aggregation rule takes the views of a collection of voters over a set of interconected issues, and yields a logically consistent collective view. The median rule is a judgement aggregation rule that selects the logically consistent view which minimizes the average distance to the...