Search results
Results from the WOW.Com Content Network
Auction theory is a branch of applied economics that deals with how bidders act in auctions and researches how the features of auctions incentivise predictable outcomes. Auction theory is a tool used to inform the design of real-world auctions. Sellers use auction theory to raise higher revenues while allowing buyers to procure at a lower cost.
In psychology and behavioral economics, the endowment effect, also known as divestiture aversion, is the finding that people are more likely to retain an object they own than acquire that same object when they do not own it.
The linkage principle is a finding of auction theory.It states that auction houses have an incentive to pre-commit to revealing all available information about each lot, positive or negative.
The terms Vickrey auction and second-price sealed-bid auction are, in this case only, equivalent and used interchangeably. In the case of multiple identical goods, the bidders submit inverse demand curves and pay the opportunity cost. [4] Vickrey auctions are much studied in economic literature but uncommon in practice.
Theoretical psychology is concerned with theoretical and philosophical aspects of psychology.It is an interdisciplinary field with a wide scope of study.. It focuses on combining and incorporating existing and developing theories of psychology non-experimentally.
Psychological pricing (also price ending or charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological impact. In this pricing method, retail prices are often expressed as just-below numbers: numbers that are just a little less than a round number, e.g. $19.99 or £2.98. [ 1 ]
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
Effort justification is an idea and paradigm in social psychology stemming from Leon Festinger's theory of cognitive dissonance. [1] Effort justification is a person's tendency to attribute the value of an outcome they put effort into achieving as greater than the objective value of the outcome.