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This study aims to understand how free-play credits affect risk-seeking behavior in slot players. Extant results suggest they encourage risk aversion, counter to the primary aim of increasing spend per visit. The results inform operators as to the effectiveness of what has become the primary play incentive for casino marketers within many of the world’s markets.

Within a quasi-experimental grouped design, 365 days of player-level performance data from four different casinos were analyzed to determine whether player losses (casino revenues) and time played differed on visits that included free-play redemptions from those that did not. Hypotheses were tested via paired-samples t-tests and Mann–Whitney U tests.

On balance, neither player losses nor time played were significantly different on the free-play visits. Neither the house money effect nor the endowment effect was supported. The results were most consistent with the prospect-theory-with-memory editing rule. No findings indicated increased risk-seeking behavior associated with the free-play offers.

Casino operators are afforded insight related to how costly free-play campaigns affect gaming spend and playtime. Both are critical to understanding the impact of free-play on the gambler’s experience.

The 365-day samples extended existing research by analyzing the impact of free-play offers on risk-taking behaviors within the scope of a perpetual/ongoing campaign. Comparisons of observed daily behavior/outcomes were made between separate tiers of like-kind gamblers from each of four different casinos. Quasi-hedonic editing rules were applied to a multistage decision framework.

There was unfinished business to address in the version of the planner–doer model developed in Thaler and Shefrin (1981). The unfinished business involved identifying and modeling the crucial roles played by temptation and mental accounting in pensions and savings behavior. The present paper has two objectives.

The first objective is to describe the key lessons learned in transitioning from the model in Thaler and Shefrin (1981) to the model in Shefrin and Thaler (1988), a transition which addressed some of the unfinished business. The second objective is to describe as yet unfinished business associated with developing a multicommodity, intertemporal version of the planner–doer framework, incorporating the concepts of temptation and mental accounting, to replace the neoclassical theory of the consumer.

Doing so will provide a theoretical foundation for nudges related to household budgeting, spending, saving, borrowing and investing.

This paper presents the first behavioral theory of the consumer, focusing on the manner in which consumers actually make decisions about budgeting, spending. borrowing and saving. The approach in the paper can be viewed as a behavioral counterpart to the neoclassical theory of the consumer. In contrast to the neoclassical approach, which assumes that consumers set and follow utility maximizing budgets, the empirical evidence indicates that only a small minority of consumers describe themselves as setting and following budgets. The behavioral theory presented here focuses on the heuristic nature of consumers' actual budgeting processes and extends the approach described in Thaler and Shefrin's 1981 seminal paper on self-control. The core of the present paper is a working paper which Shefrin and Thaler began in 1980, and as such represents unfinished business from that time. The first part of this paper describes earlier unfinished business from the 1981 framework that the authors subsequently addressed as they developed the behavioral life cycle hypothesis during the 1980s.

Mental budgeting, as a part of mental accounting theory, is expected to impact a household's budgetary management in terms of expenses. The purpose of this paper is to study whether and how mental budgeting can explain differences in farmers' reactions to different incentives of low-toxicity pesticide use.

Based on data from a survey of 393 vegetable farmers in the Sichuan Province, this analysis, using a Likert Scale approach, first explores whether farmers utilize mental budgeting. Secondly, using a Probit model, this paper analyzes how mental budgeting affects farmers' intentions to switch to low-toxicity pesticide use when faced with different incentives.

The results show that the majority of farmers categorize agricultural inputs into different groups and that 26.46% of the investigated farmers utilize mental budgeting for pest control practices. In addition, farmers who utilizing mental budgeting report a higher willingness to switch to low-toxicity pesticides when they're presented with a specific subsidy. Furthermore, if offered a price premium for quality, the willingness to switch to low-toxicity pesticides for farmers utilizing mentally budget is lower compared to other farmers.

This paper examines the existence of mental budgeting among farmers. It provides a better understanding of how farmers categorize agricultural inputs and their mental mechanisms with respect to agricultural expenses. Finally, this paper is the first to study the effects of mental budgeting on farmers' reactions to different incentives aimed at stimulating the adoption of low-toxicity pesticides.

Reports on a study that examines a model of risk behaviour in which the effects of risk propensity and problem framing are jointly evaluated. Managers from 58 oil industry organizations were presented with hypothetical business decisions involving significant gains and losses, and asked to choose between action alternatives resulting in certain outcomes or probabilistic outcomes. Also evaluates the notion that tendencies towards risk taking are complex, reflecting personality traits, habits and experience. There was support for a historical basis for risk propensity, but risk preferences were not found to be influential. Further, although both risk propensity and problem framing were found to be significant predictors of risk behaviour, there was no support for prospect theory predictions. For researchers, suggests the need to incorporate individual differences into models of risk behaviour. For organizations, suggests the need for management attention to members’ risk experiences.

This research draws on drive reduction theory and mental accounting theory to understand how the prospect of reselling used items can influence consumer feelings of consumption guilt and impact their willingness to purchase new products.

We conducted two studies with between-subjects designs to explore this relationship. In Study 1, we examined the correlation between consumers' perceived guilt and their willingness to buy a new product, considering their awareness of the product’s resale potential. Study 2 delved into the aspect of reselling a similar old product already owned by the consumer.

The findings suggest three key insights. First, consumers' awareness of resale potential significantly affects their guilt perception and purchasing decisions. Second, the resale reference price (RRP) can decrease guilt perception but increase the intention to buy a new product. Lastly, when consumers are aware of the resale value of a previously owned product that is similar to the desired new product, the effect of the RRP on their purchasing intent is mediated by consumer guilt.

This research fills a theoretical gap by empirically exploring the emotional motivations behind consumer resale behavior. It presents a novel perspective on how resale activities can shape feelings of guilt and impact purchasing decisions. This offers important implications for understanding the dynamics of consumer behavior in the second-hand market.

The present study seeks to examine how perceived uncertainty of reward schedule and reward frame (i.e. segregated vs aggregated) affect consumers ' evaluation of loyalty programs.

The authors conducted three experiments to test the hypotheses.

Ambiguity aversion was salient when the subjects perceived low uncertainty in the schedule of a loyalty program, which led to customers ' choice of a loyalty program with an aggregated frame. In contrast, the subjects displayed ambiguity proneness when they detected a high level of uncertainty in the reward schedule; as a result, the subjects preferred a loyalty program that employed a segregated frame.

The findings show that individuals adopt different types of attitudinal pattern and show dissimilar choice behaviors depending on reward schemes. The findings also provide insights to enhance the understanding concerning how consumers perceive the value of loyalty programs.

Previous research suggests the importance of random elements in relationship marketing. The present study supports this assertion by demonstrating that reward programs providing unexpected benefits can enhance the effectiveness of a loyalty program.

The results provide a more refined understanding about the relationship between perceived uncertainty and reward frame and the psychological mechanism underlying this relationship.

This study aims to provide a practical strategy for customer service and salesforce from the basis of behavioral economics. When customers thought they missed a discount but eventually could get the deal, they perceived that they had obtained more value. This research defines such a conversion effect between gain and loss accounts, demonstrates its impact in marketing settings and provides the salesforce a tactic to increase sales and quality of customer service to improve the consumer experience in the social customer journey.

Three experiments were conducted in a behavioral lab and online setting. Participants were randomly assigned to 2 (gain vs loss) × 2 (converted vs simple) between-subjects designs in the first two experiments and 2 (gain vs loss) × 2 (converted vs simple) × 2 (high price vs low price) in the third experiment. Analysis of variance was conducted to analyze the data. Mediation and moderation analyses were also conducted to identify the mediator and moderator in the model.

The conversion between gain and loss mental accounts exists, and the converted gains are more likely to lead consumers to make purchases with a once-lost discount than simple gains. This conversion effect is mediated by consumers’ implemental mindset activated by the conversion and moderated by price.

This research shows that mental accounts of gains and losses can be dynamically converted to one another. It provides a managerial tactic for salesforces and customer service to lead consumers to make a purchase decision right away. This is especially important when they aim to enhance the consumer experience in the social customer journey.

The purpose of this paper is to provide an overview and synthesis of some important literature on dividend policy, chronicle changing perspectives and trends, provide stylized facts, offer practical implications, and suggest avenues for future research.

The authors provide a survey of literature surveys with a focus on insights for paying cash dividends.

The analysis of literature surveys on dividend policy provides some stylized facts. For example, US evidence indicates that the importance of cash dividends as a part of investors’ total returns has declined over time. Share repurchases now play an increasingly important role in payout policy in countries permitting stock buybacks. The popular view is that dividend policy is important, as evidenced by the large amount of money involved and the attention that firms, security analysts, and investors give to dividends. Firms tend to follow a managed dividend policy rather than a residual dividend policy, which involves paying dividends from earnings left over after meeting investment needs while maintaining its target capital structure. Certain determinants of cash dividends are consistently important over time in shaping actual dividend policies including the stability of past dividends and current and anticipated earnings. No universal set of factors is appropriate for all firms because dividend policy is sensitive to numerous factors including firm characteristics, market characteristics, and substitute forms of dividends. Universal or one-size-fits-all theories or explanations for why companies pay dividends are too simplistic.

The dividend puzzle remains an important topic in modern finance.

This is the first a survey of literature surveys on cash dividends.

This study investigates the implications of the cumulative prospect theory in the context of US bank acquisitions, with particular emphasis on its probability weighting component. Specifically, we examine whether gambling attitudes matter in US bank takeover decisions. The evidence demonstrates that offer price premiums and target announcement returns are much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high volatility, and low price). Overall, the results indicate that banking acquisitions are influenced by gambling attitudes.

To measure idiosyncratic skewness, we follow Harvey and Siddique (2000) and Kumar (2009) and decompose total skewness into its idiosyncratic and systematic components.

The evidence demonstrates that offer price premiums and target announcement returns are much higher in bank takeover transactions involving targets with gambling (lottery) features (high skewness, high volatility, and low price). In addition, we find that synergies and bidder announcement returns are lower in lottery‐type acquisitions. The patterns we document are stronger when bidding banks are bigger, target banks are smaller, investor sentiment is above the median, and the Chicago Fed National Activity Index is negative.

This is an original piece of work in the field of banking.

The purpose of this paper is to review the insights provided by behavioral finance studies conducted in the last decade (2006-2015) examining behavioral variables in financial decision making.

The literature review assesses 623 qualitative and quantitative studies published in various international refereed journals and identifies possible scope of future work.

The paper identifies stock market anomalies which contradict rational agents of modern portfolio theory at an aggregate level and behavioral mediators, influencing the financial decision making at an investor level. The paper also attempts to classify different dimensions of risk as professed by the investor.

The authors synthesize the contribution made by behavioral finance studies in extending the knowledge of financial market and investor behavior.