Does Loss Aversion Preclude Price Variation?

References

• Adobe (2016) Media alert: Adobe data shows cyber Monday largest online sales day in history with $3.39 billion. Accessed June 8, 2017, http://news.adobe.com/press-release/marketing-cloud/media-alert-adobe-data-shows-cyber-monday-largest-online-sales-day.Google Scholar
• Baucells M, Weber M, Welfens F (2011) Reference-point formation and updating. Management Sci. 57(3):506–519.Link, Google Scholar
• Bell DR, Lattin JM (2000) Looking for loss aversion in scanner panel data: The confounding effect of price response heterogeneity. Marketing Sci. 19(2):185–200.Link, Google Scholar
• Besbes O, Lobel I (2015) Intertemporal price discrimination: Structure and computation of optimal policies. Management Sci. 61(1):92–110.Link, Google Scholar
• Besbes O, Zeevi A (2015) On the (surprising) sufficiency of linear models for dynamic pricing with demand learning. Management Sci. 61(4):723–739.Link, Google Scholar
• Cachon GP, Feldman P (2015) Price commitments with strategic consumers: Why it can be optimal to discount more frequently than optimal. Manufacturing Service Oper. Management 17(3):399–410.Link, Google Scholar
• Chen X, Hu P, Hu Z (2016) Efficient algorithms for the dynamic pricing problem with reference price effect. Management Sci. 63(12):4389–4408.Link, Google Scholar
• Dahana WD, Terui N (2006) Reference price forma-tion model for heterogeneous consumers. Working paper, Osaka University, Suita, Osaka, Japan.Google Scholar
• Dayaratna KD, Kannan PK (2012) A mathematical reformulation of the reference price. Marketing Lett. 23(3):839–849.Crossref, Google Scholar
• Fibich G, Gavious A, Lowengart O (2003) Explicit solutions of optimization models and differential games with nonsmooth (asymmetric) reference-price effects. Oper. Res. 51(5):721–734.Link, Google Scholar
• Greenleaf EA (1995) The impact of reference price effects on the profitability of price promotions. Marketing Sci. 14(1):82–104.Link, Google Scholar
• Hu Z, Nasiry J (2017) Are markets with loss-averse consumers more sensitive to losses? Management Sci. 64(3):1384–1395.Link, Google Scholar
• Hu Z, Chen X, Hu P (2016) Dynamic pricing with gain-seeking reference price effects. Oper. Res. 64(1):150–157.Link, Google Scholar
• Jacobson R, Obermiller C (1990) The formation of expected future price: A reference price for forward-looking consumers. J. Consumer Res. 16(4):420–432.Crossref, Google Scholar
• Kopalle PK, Rao AG, Assuncao JL (1996) Asymmetric reference price effects and dynamic pricing policies. Marketing Sci. 15(1):60–85.Link, Google Scholar
• Kopalle PK, Kannan PK, Boldt LB, Arora N (2012) The impact of household level heterogeneity in reference price effects on optimal retailer pricing policies. J. Retailing 88(1):102–114.Crossref, Google Scholar
• Mazumdar T, Raj S, Sinha I (2005) Reference price research: Review and propositions. J. Marketing 69(4):84–102.Crossref, Google Scholar
• Mersereau AJ, Zhang D (2012) Markdown pricing with unknown fraction of strategic customers. Manufacturing Service Oper. Management 14(3):355–370.Link, Google Scholar
• Moon S, Russell GJ, Duvvuri SD (2006) Profiling the reference price consumer. J. Retailing 82(1):1–11.Crossref, Google Scholar
• Narasimhan C, He C, Anderson ET, Brenner L, Desai P, Kuksov D, Messinger P, et al.. (2005) Incorporating behavioral anomalies in strategic models. Marketing Lett. 16(3/4):361–373.Crossref, Google Scholar
• Nasiry J, Popescu I (2011) Dynamic pricing with loss-averse consumers and peak-end anchoring. Oper. Res. 59(6):1361–1368.Link, Google Scholar
• Neumann N, Böckenholt U (2014) A meta-analysis of loss aversion in product choice. J. Retailing 90(2):182–197.Crossref, Google Scholar
• Nielsen (2009) Almost half of U.S. supermarket purchases are sold on promotion. Accessed July 28, 2017, http://www.nielsen.com/us/en/insights/news/2009/almost-half-of-u-s-supermarket-purchases-are-sold-on-promotion.html.Google Scholar
• Ovchinnikov A, Milner JM (2012) Revenue management with end-of-period discounts in the presence of customer learning. Production Oper. Management 21(1):69–84.Crossref, Google Scholar
• Özer Ö, Zheng Y (2015) Markdown or everyday low price? the role of behavioral motives. Management Sci. 62(2):326–346.Link, Google Scholar
• Phillips RL (2005) Pricing and Revenue Optimization (Stanford University Press, Stanford, CA).Crossref, Google Scholar
• Popescu I, Wu Y (2007) Dynamic pricing strategies with reference effects. Oper. Res. 55(3):413–429.Link, Google Scholar
• Rajpathak B, Pillai HK, Bandyopadhyay S (2012) Analysis of stable periodic orbits in the one dimensional linear piecewise-smooth discontinuous map. Chaos 22(3):033126.Crossref, Google Scholar
• Wang Z (2016) Intertemporal price discrimination via reference price effects. Oper. Res. 64(2):290–296.Link, Google Scholar
• Yin R, Aviv Y, Pazgal A, Tang CS (2009) Optimal markdown pricing: Implications of inventory display formats in the presence of strategic customers. Management Sci. 55(8):1391–1408.Link, Google Scholar