@article{THESIS,
      recid = {3831},
      author = {Huang, Hongxian},
      title = {Behavioral Biases in Consumer Decision Making Process:  Evidence from Subsciption Services},
      publisher = {University of Chicago},
      school = {M.A.},
      address = {2022-06-04},
      number = {THESIS},
      abstract = {Observation of past usage can be informative about future  usage. This paper develops an individual-level static  learning model that incorporates a time-varying risk-averse  coefficient that depends on consumer’s past experience to  examine behavioral biases, and applies it to a dataset from  one subscription service provider in the United States. We  find strong evidence of be- havioral biases when consumers  make choices under uncertainty: accuracy of their past  choices does impact their self-confidence level, which in  turn impacts their future choices. In particular, both  "Hot-Hand Bias" and "Gambler’s Fallacy" hold in consumers’  decision making processes. Counterfactual simulations show  that patients would have made more suitable choices if  these behavioral biases can be overcome. This study yields  a set of marketing implications for subscrip- tion services  and other business modes such as loyalty programs. Optimal  marketing strategies should take into account on how to  help consumers to become better "forward-looking" person.},
      url = {http://knowledge.uchicago.edu/record/3831},
      doi = {https://doi.org/10.6082/uchicago.3831},
}