Product availability impacts many industries such as transportation, events, and retail, yet little empirical evidence documents the importance of stocking decisions for firm profits, vertical relationships, or consumers. We conduct several experiments, exogenously removing top-selling products...

We describe a context-sensitive model of choice, in which the selection process is shaped not only by the attractiveness of items but also by their semantics (‘salience’). Items are ranked according to a binary relation of salience, and a linear order is associated to each item. The...

In poor rural settings, individual risk preferences represent one of the channels driving the shift from low-return/low-risk activities towards high-return/high-risk activities. This study takes advantage of the data collected for the impact evaluation of an unconditional cash transfers program...

Information is crucial to the supply chain because it provides the foundation for managerial decisions. Inventory decisions often depend on private forecast shared by retailers. Facing uncertain demand, suppliers tend to rely on nonverifiable retailers’ reports known as “cheap talk”....

The default model of economic choice--used in economics instruction and in the bulk of scholarship in microeconomics--assumes that decision makers are selfish. As shown by behavioral scientists, this assumption is consistent with chimpanzee behavior, but inconsistent with human behavior. Unlike...

This paper theoretically and experimentally examines the anchoring effect of focal points in successive negotiations with different bargaining structures. Two variants of the Nash bargaining game that possibly end in conflict are constructed, which strongly incentivize the players to coordinate...