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Incorporating Behavioral Anomalies in Strategic Models

Author

Listed:
  • Chakravarthi Narasimhan
  • Chuan He
  • Eric Anderson
  • Lyle Brenner
  • Preyas Desai
  • Dmitri Kuksov
  • Paul Messinger
  • Sridhar Moorthy
  • Joseph Nunes
  • Yuval Rottenstreich
  • Richard Staelin
  • George Wu
  • Z. Zhang

Abstract

Behavioral decision researchers have documented a number of anomalies that seem to run counter to established theories of consumer behavior from microeconomics that are often at the core of analytical models in marketing. A natural question therefore is how equilibrium behavior and strategies would change if models were to incorporate these anomalies in a consistent way. In this paper we identify several important and generalizable anomalies that modelers may want to incorporate in their models. We briefly discuss each phenomenon, identify a key unresolved issue and outline a research agenda to be pursued. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Chakravarthi Narasimhan & Chuan He & Eric Anderson & Lyle Brenner & Preyas Desai & Dmitri Kuksov & Paul Messinger & Sridhar Moorthy & Joseph Nunes & Yuval Rottenstreich & Richard Staelin & George Wu &, 2005. "Incorporating Behavioral Anomalies in Strategic Models," Marketing Letters, Springer, vol. 16(3), pages 361-373, December.
    • Handle: RePEc:kap:mktlet:v:16:y:2005:i:3:p:361-373
    DOI: 10.1007/s11002-005-5898-9
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    8. Ningyuan Chen & Javad Nasiry, 2020. "Does Loss Aversion Preclude Price Variation?," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 383-395, March.
    9. Dmitri Kuksov & Kangkang Wang, 2014. "The Bright Side of Loss Aversion in Dynamic and Competitive Markets," Marketing Science, INFORMS, vol. 33(5), pages 693-711, September.
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