Price competition with satisficing consumers

Papi, Mauro

doi:10.1016/j.ijindorg.2017.09.001

Cited by 7 publications

(2 citation statements)

References 32 publications

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“…The model showed that a firm maximizes their profit to a sufficient degree that maintains the survival of the management, but not beyond, in exchange for other higher order needs under the framework of traditional utility maximizing theory. Mauro Papi developed a price competition model with the satisficing consumers [10]. Firms endogenously influence the consumers aspiration price via marketing.…”

Section: Contributionmentioning

confidence: 99%

Impact of Expectation on Food Waste

Guan¹,

Wang²

2022

Advances in Social Science, Education and Humanities Research

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This research believes culture plays a minimum role in contributing to it as we have observed similar behavior across countries. Multiple pieces of research showed that educational campaigns hardly reduce food waste. This paper aims to study individual behavior and expectations as determinants of food waste. The research question is what are the factors that lead to food waste? We designed questionnaires and distributed them to restaurant customers in both China and the United States in the form of QR codes. Then we collected a total of 152 responses and conducted an analysis on R studio. We found that the greater the difference between one's expected spending and actual spending, the more percentage of food one will likely waste. Such a pattern is also true for expected consumption and actual consumption. This result is interpreted through the lens of satisficing theory developed by Herbert Simon and anchoring by Tversky and Kahneman. We applied satisficing theory in the food industry to analyze food waste. This extends the application of the theory and provides an alternative way to interpret food waste. It shows that food waste is the result of consumers' rational utility-maximizing behavior. Additionally, the research also shows that people tend to spend more than they would have expected during a dining experience. Our research has confirmed conclusions from previous studies on consumers' awareness of consumption amount and external impacts on their behavior. More importantly, we connect those impacts with food waste percentage and obtain a model that has predictive power on food waste percentage.

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Section: Contributionmentioning

confidence: 99%

Impact of Expectation on Food Waste

Guan¹,

Wang²

2022

Advances in Social Science, Education and Humanities Research

View full text Add to dashboard Cite

show abstract

“…In these cases, obfuscation can be interpreted as making financial decisions mentally more demanding or as inventing new financial jargon with the aim to reduce consumers' ability in understanding their offers. A couple of recent papers (discussed in more detail in our literature survey) also adopt the idea that consumers prefer simple contracts (Papi, 2014;Bachi and Spiegler, 2018). Relatedly, consumers may prefer to visit firms with lower search costs as in Wilson (2010).…”

Section: Introductionmentioning

confidence: 99%