Although price-matching refund policies are common in many retail environments, the impact of such policies on consumers has largely been ignored. This article reports the results of three studies that examine price-matching policies from a consumer perspective. Study 1 shows that consumers perceive price-matching policies as signals of low store prices and that the presence of a refund increas...

Many purchases are unplanned and so do not fit comfortably within standard neoclassical consumer theory. We model such ”impulse” purchases by a simple reservation price rule used by impatient consumers. The equilibrium exhibits price dispersion in pure strategies, with lower price firms earning higher profits. The range of price dispersion increases with the number of firms: the highest price i...

Bitcoin is an online currency that is used worldwide to make online payments. It has consequently become an investment vehicle in itself and is traded in a way similar to other open currencies. The ability to predict the price fluctuation of Bitcoin would therefore facilitate future investment and payment decisions. In order to predict the price fluctuation of Bitcoin, we analyse the comments p...

SESSION OVERVIEW Price cognition plays a pivotal role in models of consumer behavior postulated in the economics as well as the psychology literature (Monroe 2003; Winer 2006). Both streams of literature concur on the following assumption: A buyer’s subjective judgment of the magnitude of a price should be an important determinant in purchase decisions. However, the psychological processes that...

House purchasing has become an important asset allocation choice for most families in China. price fluctuation is also one of the factors that leads to systematic risks financial market, which might cause economic crises and then reduce consumption. Since China formally established dual-pillar management framework macroprudential policy 2019, it played a crucial role maintaining stability house...

We integrate a retailer’s return policy and a supplier’s buyback policy within a modeling framework. In this setting, consumers decide whether to buy and then whether to return the product, the retailer sets the retail price, quantity, and refund price, and the supplier chooses the wholesale price and buyback price. Both the demand uncertainty and consumers’ valuation uncertainty are considered...

In this work we extend a well-known model from arrested physical systems, and employ it in order to efficiently depict different currency pairs of foreign exchange market price fluctuation distributions. We consider the exchange rate price in the time range between 2010 and 2016 at yearly time intervals and resolved at one minute frequency. We then fit the experimental datasets with this model,...

Consumers’ pricesensitivity is an important input to strategic and tactical decisions. Price sensitivities depend on various factors for which our purpose of this paper is to explore consumers’ price sensitivity and innovativenessas well asto contribute to diffusion theory by adding information on price sensitivity.This research reviews how consumers demonstrate their sensitivities to price on ...

This paper is the first to examine the effect of minimum price guarantees in a sequential search model. Minimum price guarantees are not advertised and only known to consumers when they come to the shop. We show that in such an environment, minimum price guarantees increase the value of buying the good and therefore increase consumers’ reservation prices. This increase is so large that even aft...

Many advertisements inform the consumer about product characteristics, while others give price information with very little product information, and some provide both types of information. We propose a framework to analyze the incentives for firms to provide various types of information. We consider the case of a single seller. There is no incentive to provide information on product characteris...