Loss aversion states that "losses loom larger than gains." We consider two types of loss aversion defined by two interpretations of loss. A loss can be defined (1) in terms of valence or (2) in terms of possession. Correspondingly, valence loss aversion (VLA) entails greater sensitivity to...

We contrast memory-based and stimulus-based choices, using dual-process theories such as Kahneman and Frederick's system 1/system 2 dichotomy. Systems 1 and 2 are conceptualized as distinct modes of thought, the former automatic and affective, the latter controlled and deliberate. Cognitive load...

Behavioral decision researchers have documented a number of anomalies that seem to run counter to established theories of consumer behavior from microeconomics that are often at the core of analytical models in marketing. A natural question therefore is how equilibrium behavior and strategies...

Behavioral decision researchers have documented a number of anomalies that seem to run counter to established theories of consumer behavior from microeconomics that are often at the core of analytical models in marketing. A natural question therefore is how equilibrium behavior and strategies...

People frequently need to predict the preferences of others. Such intuitive predictions often show social projection, in which one's own preference for an option increases its perceived popularity among others. We use support theory to model social projection in the prediction of preferences,...

Low numerical probabilities tend to be directionally ambiguous, meaning they can be interpreted either positively, suggesting the occurrence of the target event, or negatively, suggesting its non-occurrence. High numerical probabilities, however, are typically interpreted positively. We argue...