Economics Insights @ CBS

We examine consumers' price sensitivity using a new approach that incorporates probabilistic thresholds for price gains and price losses in the reference price models. We model the threshold as a function of company, competitor and consumer specific factors. Model application to scanner panel data for coffee shows that our model is superior in fit compared to ordinary logit and two existing reference price models.

Many tendencies in social perceivers' judgments about individuals and groups can be integrated in terms of the premise that perceivers rely on implicit theories of agency acquired from cultural traditions. Whereas American culture primarily conceptualizes agency as a property of individual persons, other cultures conceptualize agency primarily in terms of collectives such as groups or nonhuman actors such as deities or fate.

Recent papers have developed analytical models to explain and quantify the benefits of delayed differentiation and quick response programs. These models assume that while demands in each period are random, they are independent across time and their distribution is perfectly known, i.e., sales forecasts do not need to be updated as time progresses. In this paper, we characterize these benefits in more general settings, where parameters of the demand distributions fail to be known with accuracy or where consecutive demands are correlated.