Related papers: An experiment in price perception error
High-dimensional multivariate longitudinal data, which arise when many outcome variables are measured repeatedly over time, are becoming increasingly common in social, behavioral and health sciences. We propose a latent variable model for…
Recommendation systems rely on user-provided data to learn about item quality and provide personalized recommendations. An implicit assumption when aggregating ratings into item quality is that ratings are strong indicators of item quality.…
In feature-based dynamic pricing, a seller sets appropriate prices for a sequence of products (described by feature vectors) on the fly by learning from the binary outcomes of previous sales sessions ("Sold" if valuation $\geq$ price, and…
Visual statistical inference is a way to determine significance of patterns found while exploring data. It is dependent on the evaluation of a lineup, of a data plot among a sample of null plots, by human observers. Each individual is…
Cognitive biases, well-studied in humans, can also be observed in LLMs, affecting their reliability in real-world applications. This paper investigates the anchoring effect in LLM-driven price negotiations. To this end, we instructed seller…
What do pickles and trampolines have in common? In this paper we show that while purchases for these products may seem innocuous, they risk revealing clues about customers' personal attributes - in this case, their race. As online retail…
We propose a nonparametric method for estimating the distribution of consumer welfare from cross-sectional data with no restrictions on individual preferences. First demonstrating that moments of demand identify the curvature of the…
Most online markets establish reputation systems to assist building trust between sellers and buyers. Sellers' reputations not only provide guidelines for buyers but may also inform sellers their optimal pricing strategy. In this research,…
We study the associations between everyday economic decision-making quality and people's emotional states. Using high-frequency, highly disaggregated consumer "scanner" data, we show that the cost of poor decision-making is substantial, on…
Prior research in psychology has found that people's decisions are often inconsistent. An individual's decisions vary across time, and decisions vary even more across people. Inconsistencies have been identified not only in subjective…
Consumer regret is a widespread post-purchase emotion that significantly impacts satisfaction, product returns, complaint behavior, and customer loyalty. Despite its prevalence, there is a limited understanding of why certain consumers…
Traditionally, Recommender Systems (RS) have primarily measured performance based on the accuracy and relevance of their recommendations. However, this algorithmic-centric approach overlooks how different types of recommendations impact…
As algorithms increasingly mediate competitive decision-making, their influence extends beyond individual outcomes to shaping strategic market dynamics. In two preregistered experiments, we examined how algorithmic advice affects human…
Estimating consumer preferences is central to many problems in economics and marketing. This paper develops a flexible framework for learning individual preferences from partial ranking information by interpreting observed rankings as…
In business and marketing, analyzing the reasons behind buying is a fundamental step towards understanding consumer behaviors, shaping business strategies, and predicting market outcomes. Prior research on purchase reason has relied on…
People often reject offers that are too generous due to the perception of hidden drawbacks referred to as "phantom costs." We hypothesized that this perception and the decision-making vary based on the type of agent making the offer (human…
Increasing online shoppers have generated enormous amount of data in form of reviews (text) and sales data. Aggregate reviews in form of rating (stars) have become noticeable indicators of product quality and vendor performance to…
We consider a novel pricing and advertising framework, where a seller not only sets product price but also designs flexible 'advertising schemes' to influence customers' valuation of the product. We impose no structural restriction on the…
Many policy counterfactuals depend on how consumers value product attributes such as sugar, sodium, caffeine, alcohol, or emissions. Standard hedonic and differentiated-products models interpret these valuations statically. That…
We present a graph-theoretic model of consumer choice, where final decisions are shown to be influenced by information and knowledge, in the form of individual awareness, discriminating ability, and perception of market structure. Building…