We consider a firm that produces a specialty or a branded image good, where consumers derive part of their utility from the eliteness of the brand’s image and exclusivity of the product. Once high valuation consumers have purchased the product, it is optimal for the firm to reduce the price and capture lower valuation consumers. However, this dilutes the exclusivity of the brand, and results in...

In this paper, we present a formal model of the pharmaceutical market as a market with price competition between the original and the generic alternative. The generic substitutes are perceived by the consumers as di¤erentiated products, even though they are chemically identical. In addition, because of price regulation, a low ”limit price” will be a credible commitment not to increase prices up...

Existing evidence suggests that preferences are affected by whether a price is presented as one all-inclusive expense or partitioned into a set of mandatory charges. To explain this phenomenon, we introduce a new mechanism whereby price partitioning affects a consumer’s perception of the non-focal (or secondary) benefits derived from the transaction. Four experiments support the basic hypothesi...

In this paper, we study how short-sale constraints affect asset price and market efficiency. We consider a fully rational expectations equilibrium model, in which investors trade for two reasons, to share risk and to speculate on private information, but they face short-sale constraints. Short-sale constraints limit both types of trades, and thus reduce the allocational and informational effici...

In financial decision making, perceived fairness can have substantial influence on individuals’ choices. In this paper, we investigate process and outcome dimensions that moderate perceived fairness for a variety of financial products. Our hypotheses draw from the existing fairness literatures in marketing, economics, and organizational behavior, and relate the fairness concepts from those exis...

Aggregate timber supply by ownership was investigated for a small region by applying stand-level harvest choice models to a representative sample of stands and then aggregating to regional totals using the area-frame of the forest survey. Timber harvest choices were estimated as probit models for three ownership categories in coastal plain southern pine stands of North Carolina using individual...

Chinese C2C market grows rapidly. However, it is plagued by serious trust fraud problems. The level of price dispersion in C2C platforms is relatively high. The mixed interaction between “lemons market” problem and high level of price dispersion makes it hard for buyers to identify trustworthy sellers with low price. We are interested in the generation of initial trust and purchase intention wh...

the aim of this study was to examine potato growers' perceptions of risk sources and risk management strategies and their risk management behavior. a survey research method was used in this study. the data originated from a sample of potato growers (n= 128) of ardabil province in the cropping year of 2013. the respondents were divided into two groups of less risk-averse (lra) and more risk-aver...