The search for consistency in economic search

Article Abstract:

The absence of consistency in the method of choosing the most economic price of a good when the buyer has some knowledge of the price distribution is examined through an experiment. Findings reveal that people are consistent in their search behavior subject to certain conditions. Inconsistent strategies may be the result of decision difficulty, extremely low search costs and the individuals' intellectual capacity. It was also discovered that the heuristic often used is quite simple and not the best.

Evaluation, Economic research

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Can the maximization principle be discarded? A comment

Article Abstract:

Shu Li's contention that the maximization principle can no longer be relied on because of data which refute the subaddivity and subproportionality in prospect theory is incorrect. There are other maximizing theories other than the prospect theory. Economics theorists can easily formulate maximizing theories which do not depend on subaddivity and subproportionality. Li's data will only stimulate economics experts to formulate a substitute organizing structure for the maximization principle.

Risk (Economics), Uncertainty

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Firm size and market behavior: a theory of their relationship

Article Abstract:

An analysis of firm custom and pricing policy reveals that the greater the number of committed customers, the greater the firm's propensity to chose additional advertising over price cuts. The study also reveals that the difference in product policy applies best to firms that sell products that are highly differentiated and have a wide variety of partial substitutes such as retailers.

Management Science, Pricing Policy, Management, Pricing, Economies of scale

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