Prospect Theory proposed that the (dis)utility of losses is always more than gains due to a phenomena called ‘loss-aversion’, a result obtained in multiple later studies over the years. However, some researchers found reversed or no loss-aversion for affective judgments of small monetary amounts but, those findings have been argued to stem from the way… Continue reading Is loss aversion magnitude dependent?
A prosocial bonus is money given to people that needs to be spent on others. This article suggests a new way of implementing corporate social spending by involving the employees using ‘prosocial bonuses’. Such a policy can potentially serve a dual benefit of improving employee satisfaction and help companies reach the mandate for social spending.… Continue reading Prosocial bonus and corporate social responsibility spending
The purpose of this paper is to study how consumers process price frames of product bundles (product plus surcharge) and discount offers to weigh contentious positions between the weighted-additive and the reference-dependent models. Further, some research suggests bundling, while others suggest partitioning to be a more effective pricing strategy. This research evaluated the relative influences… Continue reading Price discount framings on product bundles with shipping surcharges in the Indian market