Incorporating Behavioral Anomalies in Strategic Models
Journal Article
Overview
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