arXiv Open Access 2021

Buy It Now or Later, or Not: Loss Aversion in Advance Purchasing

Senran Lin

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Abstrak

This paper studies the advance-purchase game when a consumer has belief-based loss-averse preferences, introducing a novel perspective by incorporating reference updating. It demonstrates that loss aversion increases the consumer's willingness to pre-purchase. Moreover, the paper endogenizes the seller's price-commitment behavior in the advance-purchase problem. The analysis reveals that the seller will commit to his spot price even with no obligation to do so, a behavior previously assumed in the literature.

Topik & Kata Kunci

econ.TH

Penulis (1)

Senran Lin

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APA MLA BibTeX

Lin, S. (2021). Buy It Now or Later, or Not: Loss Aversion in Advance Purchasing. https://arxiv.org/abs/2110.14929

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Informasi Jurnal

Tahun Terbit: 2021
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓