Paying Too Much and Being Happy about It: Existence, Causes, and Consequences of Tariff-Choice Biases

By Anja Lambrecht, Bernd Skiera. 2006

396 citations recorded by the source corpus.

Subfields: General Decision Sciences, Marketing

View Paper: https://www.semanticscholar.org/paper/a02d2f317668d121220da403d48327c90a3bfaf8

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Citations in the corpus

Smart Meter Devices and The Effect of Feedback on Residential Electricity Consumption: Evidence from a Natural Experiment in Northern Ireland (2013, neutral): “zero, and with the selection correction procedures developed by Lee (1983) and Dahl (2002).”
Consumer Behavior towards On-net/Off-net Price Differentiation (2011, background): “We start from the observation that, in reality, many consumers are chosing calling plans that are not cost minimizing for them (see, e.g., Lambrecht and Skiera, 2006).”
Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs (2013, neutral): “6For an overview of the empirical evidence documenting the flat-rate bias see Lambrecht and Skiera (2006).”
Do Consumers Switch to the Best Supplier (2007, neutral): “Using data from a German Internet provider, Lambrecht and Skiera (2006) estimate that around a third of consumers have a persistent ‘flat-rate bias’, with over half of these paying an excess of 100% above the cheapest alternative tariff.”
Tariff Choice with Consumer Learning and Switching Costs (2011, methodology): “Our model of tariff choice differs from Lambrecht and Skiera (2006), Lambrecht, Seim, and Skiera (2007), and Iyengar, Ansari, and Gupta (2007) in that consumers do not have idiosyncratic preferences for tariffs.”
Does Uncertainty Matter? Consumer Behavior Under Three-Part Tariffs (2007, neutral): “(5) 0 1 2 FR FR P ijt j j i ijtI I BUS Iς γ γ γ ε= + + + We include observable and unobservable preference shifters to account in a reduced form for tariff- and provider-specific preferences identified in previous research (Nunes 2000, Lambrecht and Skiera 2006).”
Cellular Service Demand: Biased Beliefs, Learning, and Bill Shock (2015, background): “Via mean biases, we allow for overestimation of demand, which is one of the causes of flat-rate bias documented by Lambrecht and Skiera (2006) in internet service choice.”
Definition, Measurement and Determinants of the Consumer's Willingness to Pay: A Critical Synthesis and Avenues for Further Research (2009, background): “Lambrecht and Skiera (2006) focused on choices made by customers of an ISP between three-part tariffs6 or traditional two-part tariffs7 within the framework of WTP.”
A Conjoint Approach to Multipart Pricing (2008, background): “…service consumer i expects to use if he or she selects plan j. Consistent with the literature on multipart pricing (Lambrecht, Seim, and Skiera 2007; Lambrecht and Skiera 2006; Narayanan, Chintagunta, and Miravete 2007; Nunes 2000), we assume that the consumer is uncertain about the value of nij.”