Related papers: An experiment in price perception error
We consider a periodical equilibrium pricing problem for multiple firms over a planning horizon of T periods. At each period, firms set their selling prices and receive stochastic demand from consumers. Firms do not know their underlying…
We study the pricing behavior of third-party platforms facing strategic agents. Assuming the platform is a revenue maximizer, it observes market features that generally affect demand. Since only the equilibrium price and quantity are…
This paper presents the Sequential Rationality Hypothesis, which argues that consumers are better able to make utility-maximizing decisions when products appear in sequential pairwise comparisons rather than in simultaneous multi-option…
Standard methods in preference learning involve estimating the parameters of discrete choice models from data of selections (choices) made by individuals from a discrete set of alternatives (the choice set). While there are many models for…
Consumer choice modeling takes center stage as we delve into understanding how personal preferences of decision makers (customers) for products influence demand at the level of the individual. The contemporary choice theory is built upon…
Predictive algorithms inform consequential decisions in settings with selective labels: outcomes are observed only for units selected by past decision makers. This creates an identification problem under unobserved confounding -- when…
We study the equilibrium behavior in a multi-commodity selfish routing game with many types of uncertain users where each user over- or under-estimates their congestion costs by a multiplicative factor. Surprisingly, we find that…
We develop empirical models that efficiently process large amounts of unstructured product data (text, images, prices, quantities) to produce accurate hedonic price estimates and derived indices. To achieve this, we generate abstract…
The advent of Large Language Models (LLMs) has revolutionized product recommenders, yet their susceptibility to adversarial manipulation poses critical challenges, particularly in real-world commercial applications. Our approach is the…
There are clear benefits associated with a particular consumer choice for many current markets. For example, as we consider here, some products might carry environmental or `green' benefits. Some consumers might value these benefits while…
The prevalence of e-commerce has made detailed customers' personal information readily accessible to retailers, and this information has been widely used in pricing decisions. When involving personalized information, how to protect the…
We investigate how the choice of decision makers can be varied under the presence of risk and uncertainty. Our analysis is based on the approach we have previously applied to individual decision makers, which we now generalize to the case…
Emotion and fairness play a key role in mediating socioeconomic decisions in humans; however, the underlying neurocognitive mechanism remains largely unknown. This exploratory study unraveled the interplay between agents' emotions and the…
User's perception of product, by essence subjective, is a major topic in marketing and industrial design. Many methods, based on users' tests, are used so as to characterise this perception. We are interested in three main methods:…
The "free trial" followed by automatic renewal is a dominant business model in the digital economy. Standard models explain trials as a mechanism for consumers to learn their valuation for a product. We propose a complementary theory based…
The question of how people vote strategically under uncertainty has attracted much attention in several disciplines. Theoretical decision models have been proposed which vary in their assumptions on the sophistication of the voters and on…
Global concern over food prices and security has been exacerbated by the impacts of armed conflicts such as the Russia Ukraine War, pandemic diseases, and climate change. Traditionally, analyzing global food prices and their associations…
This work on gap acceptance is based on the premise that the decision to accept/reject a gap happens in a person's mind and therefore must be based on the perceived gap and not the measured gap. The critical gap must also exist in a…
This study explores student attitudes to the use of substantive on-line assessments that require mathematical answers. Our goal is to learn what are the important aspects in a design of more effective e-assessments that support learning of…
Firms in the U.S. spend over 200 billion dollars each year advertising their products to consumers, around one percent of the country's gross domestic product. It is of great interest to understand how that aggregate expenditure affects…