Incorporating Behavioral Anomalies in Strategic Models, Marketing Letters
Behavioral decision researchers have documented 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.
Chakravarthi Narasimhan, Chuan He, Eric T. Anderson, Lyle Brenner, Preyas Desai, Dimitri Kuksov, Paul Messinger, Sridhar Moorthy, Joseph Nunes, Yuval Rottenstreich, Richard Staelin, George Wu, Z.John Zhang
Narasimhan, Chakravarthi, Chuan He, Eric T. Anderson, Lyle Brenner, Preyas Desai, Dimitri Kuksov, Paul Messinger, Sridhar Moorthy, Joseph Nunes, Yuval Rottenstreich, Richard Staelin, George Wu, and Z.John Zhang. 2005. Incorporating Behavioral Anomalies in Strategic Models. Marketing Letters. 16(3): 361-373.