Incorporating Behavioral Anomalies in Strategic Models

Marketing Letters, Vol. 16, Nos. 3/4, pp. 361-373, 2005

University of Alberta School of Business Research Paper No. 2013-789

13 Pages Posted: 11 Jun 2007 Last revised: 25 Jul 2013

Chakravarthi Narasimhan

Washington University in St. Louis - John M. Olin Business School

Eric Anderson

Northwestern University - Department of Marketing

Lyle Brenner

University of Florida - Department of Marketing

Preyas S. Desai

Duke University - Fuqua School of Business

Dmitri Kuksov

Washington University in St. Louis - John M. Olin Business School

Paul R. Messinger

University of Alberta - Department of Marketing, Business Economics & Law

Sridhar Moorthy

University of Toronto - Rotman School of Management

Joseph Nunes

University of Southern California - Marshall School of Business

Richard Staelin

Duke University - Fuqua School of Business

Yuval Rottenstreich

University of Chicago - Booth School of Business

George Wu

University of Chicago - Booth School of Business

Date Written: 2004

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.

Keywords: marketing strategy, game theory, reference dependence, fairness, confirmatory bias

Suggested Citation

Narasimhan, Chakravarthi and Anderson, Eric and Brenner, Lyle and Desai, Preyas S. and Kuksov, Dmitri and Messinger, Paul R. and Moorthy, Sridhar and Nunes, Joseph and Staelin, Richard and Rottenstreich, Yuval and Wu, George, Incorporating Behavioral Anomalies in Strategic Models (2004). Marketing Letters, Vol. 16, Nos. 3/4, pp. 361-373, 2005; University of Alberta School of Business Research Paper No. 2013-789. Available at SSRN: https://ssrn.com/abstract=991950

Chakravarthi Narasimhan

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive, Campus Box 1133
Olin School of Business
St. Louis, MO 63130-4899
United States
314-935-6313 (Phone)
314-935-6359 (Fax)

Eric Anderson (Contact Author)

Northwestern University - Department of Marketing ( email )

Kellogg School of Management
2001 Sheridan Rd.
Evanston, IL 60208
United States

Lyle Brenner

University of Florida - Department of Marketing ( email )

Gainesville, FL 32611
United States

Preyas S. Desai

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

Dmitri Kuksov

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States

Paul R. Messinger

University of Alberta - Department of Marketing, Business Economics & Law ( email )

Edmonton, Alberta T6G 2R6
Canada

Sridhar Moorthy

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6
Canada

HOME PAGE: http://www.rotman.utoronto.ca/~moorthy

Joseph Nunes

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd
Los Angeles, CA 90089
United States

Richard Staelin

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7824 (Phone)
919-660-7990 (Fax)

HOME PAGE: http://www.fuqua.duke.edu/faculty/alpha/rstaelin.h

Yuval Rottenstreich

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

George Wu

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

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