Marketing is an applied science that tries to explain and influence how firms and consumers behave in markets. Marketing models are usually applications of standard economic theories, which rely on strong assumptions of rationality of consumers and firms. Behavioral economics explores the implications of the limits of rationality, with the goal of making economic theories more plausible by explaining and predicting behavior more accurately while maintaining formal power. This article reviews six behavioral economics models that are useful to marketing. Three models generalize standard preference structures to allow for sensitivity to reference points and loss aversion, social preferences toward outcomes of others, and preference for instant gratification. The other three models generalize the concept of game-theoretic equilibrium, allowing decision makers to make mistakes, encounter limits on the depth of strategic thinking, and equilibrate by learning from feedback. The authors also discuss a specific marketing application for each of

*Signatures are on file in the Graduate School. Discounting is traditionally conceptualized as the comparison of the value of gains or losses that occur at different times. It endeavors to incorporate how humans trade off values to be received in the future versus value received immediately into economic analysis. Discounting has emerged as a key factor in assessments of climate change and other long-term environmental issues. However, the traditional time-only discounting neglects important spatial influences on how values are compared. This dissertation presents what is, to my knowledge, the most comprehensive effort to incorporate space into discounting as a theoretical, empirical, and applied concept. New discounting theory is presented that examines major reasons for discounting across time and finds that these reasons also hold for discounting across space. The theoretical work culminates in a new conceptualization of discounting that handles discounting across space as well as time while clarifying the philosophical basis for what is and is not discounting. New empirical research on discounting examines how humans discount across space and time and