Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs

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Expectations-Based Reference-Dependent Life-Cycle Consumption (2017, background): “Angeletos et al. (2001) and Laibson et al. (2012) analyze hyperbolic-discounting 14Heidhues and Koszegi (2008, 2010), Herweg and Mierendorff (2012), and Rosato (2012) explore the implications for consumer pricing, which are tested by Karle et al. (2011), Herweg et al. (2010) do so for…”
Behavioral Contract Theory (2014, background): “As an extreme example in the context of contracting when the consumer is loss averse and her demand for the product is uncertain (e.g., mobile phone contracts), Herweg and Mierendorff (2013) show that—consistent with many real-world examples—the seller might prefer a flat-rate contract.”
Expectations as Endowments: Evidence on Reference-Dependent Preferences from Exchange and Valuation Experiments (2011, unknown): “Apart from distinguishing between different theories of reference point formation, our experi- 3The theoretical implications of expectation-based reference points for optimal pricing strategies are studied by Heidhues and Kőszegi (2008, 2010) and Herweg (2010).”