The extensive adoption of uniform pricing for branded variants is a puzzling phenomenon, considering that firms may improve profitability through price discrimination. In this paper, we incorporate consumers' concerns of peer-induced price fairness into a model of price competition and show that...

The paper aims to contribute to the building of a more realistic understanding of the new born field of behavioral economics, based on a (fragmented) historical perspective of the psychological influences that can be traced in representative works from important economists. Exploring the theory...

This paper shows that households with positional concerns and convex status utility use gambling to attempt leapfrogging in the social hierarchy. We test this theoretical prediction relying on household data that is representative for Germany, proxying the status orientation of households by...

SRTR program reports provide detailed information on transplant center performance relative to risk-adjusted expected values. Designed to improve outcomes, the behavioral implications of these reports may generate a longer wait time for transplant. UNOS data for 28,839 deceased donor kidney...

We contend that consumption of a given status conveying good frequently follows a Kuznets-like curve. Concretely, the consumption of a given status marker first increases with the level of income per capita, reaches a maximum and then decreases at higher levels of income. Moreover, globalization...

Many scholars argue that environmental issues can be addressed through technological innovation, a proposal which echoes a lasting debate between environmental and ecological economics about the substitution rate between natural and manufactured capital. In addition to these two established...

We examine whether, and how, listing strategies impact sale prices in residential home sales. Literatures in housing economics, negotiations, and auctions offer diverse predictions around this question. On the one hand, housing studies typically treat home prices as an objective function of...

We study how taxes and subsidies affect portfolio choices in a laboratory experiment. We find highly significant differences after intervention, even though the net income is identical in all our treatments and thus the decision pattern of investors should be constant. In particular, we observe...

We examine Australian horseracing bookmakers’ responses to late scratches, instances in which a horse is abruptly withdrawn after betting has commenced. Our observed bookies exhibit anchoring on the original odds and fail to re-adjust odds fully on the remaining horses after a scratch, thereby...

We present a critique of Behavioral Economics, the dominant approach to reforming the regulation of retail credit, and propose a new approach to managing uncertainty in consumer lending. This new approach draws on a different model of decision-making, Distributed Cognition, to improve contract...