Standard pricing theories consider consumers without temptation. With temptation and costly self-control, consumers dislike choice sets with tempting alternatives. We study firms' strategy against such consumers, using Gul–Pesendorfer preferences and a game whStandard pricing theories consider consumers without temptation. With temptation and costly self-control, consumers dislike choice sets with tempting alternatives. We study firms' strategy against such consumers, using Gul–Pesendorfer preferences and a game where firms compete by offering menus.[+][-]
