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- W2242807487 abstract "The assumption that consumers are fully rational and hold correct price expectations is demanding in dynamic settings. We claim that it is testable provided that market-level data on prices and purchases are available. We find that consumers hold simple expectations regarding the timing of promotions for music albums: consumers act as if they were aware of reductions but did not revise their beliefs over time. The anticipation effect, due to strategically delaying purchase, amounts to 1/5 of the decision to purchase during regular periods. These results have implications in terms of demand estimation, optimal pricing and welfare computations." @default.
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- W2242807487 date "2016-01-01" @default.
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- W2242807487 title "Do consumers correctly expect price reductions? Testing dynamic behavior" @default.
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- W2242807487 doi "https://doi.org/10.1016/j.ijindorg.2015.10.003" @default.
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