Marketing Letters, Vol. 16, Nos. 3/4, pp. 361-373, 2005
13 Pages Posted: 11 Jun 2007 Last revised: 25 Jul 2013
Date Written: 2004
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: 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