| Course | DBA-8020 Seminar in Economics and Finance Models and Matrices of Sustainability |
|---|---|
| Module | Module 1 |
| Paper type | Discussion forum: initial response and two comments |
| Length | About 406 words |
| Format | Discussion post with APA 7 citations |
| School | Thomas Edison State University |
| Program | Doctor of Business Administration |
| Updated | October 2026 |
Free sample paper for DBA 8020 Module 1
Module 1 Discussion: Utility, Habit and a Refill Subscription
Utility, Habit and a Refill Subscription: Testing Consumer Theory Against Real Shoppers
Our concentrates cost less per use than the ready-to-use spray bottles shoppers already know and create about 80 percent less plastic. A neoclassical consumer, maximizing utility subject to a budget, should switch: the product delivers the same cleaning at lower cost per use, plus whatever value the consumer places on less waste. Saros (2020) presents this model, in which consumers with stable, complete preferences choose the bundle that maximizes utility given prices and income, alongside critiques from other schools that question its assumptions.
Our pilot data tell a different story, and they matter because the launch budget assumes adoption the model would predict. In a test with 400 households, only 31 percent of those who said they preferred less plastic adopted the refill subscription within three months. Two behavioral ideas, each tested in experiments, help explain the gap between stated preference and action.
Kahneman and Tversky (1979) found that people judge outcomes as gains or losses from a reference point, and that a loss hurts more than a gain of the same size pleases. For shoppers, the familiar spray bottle is the reference point; the effort of mixing a concentrate and the risk that it cleans less well feel like losses that outweigh the savings.
Thaler (1980) argued that consumers keep mental accounts and treat money differently depending on how it is framed. A $12 monthly subscription is a new, visible charge, while the same spending on spray bottles is spread across grocery trips and barely noticed.
The implication for our launch is that price alone will not drive switching. We plan a first refill shipped with a pre-filled bottle, so there is nothing to mix the first time, and pricing framed per cleaning task rather than per month. We will also show, on the order page, how much plastic the household has avoided so far, giving the less visible gain a running total that can offset the felt loss of changing habits.
Comment on Jamal's Post
Jamal, your point that electric vehicle buyers weigh fuel savings rationally fits the model, but range anxiety looks like loss aversion. Did your survey measure how buyers framed the risk?
Comment on Stephanie's Post
Stephanie, generic drugs are identical yet many patients choose brands. Is that a failure of the model, or a rational response to uncertainty about quality that the model would treat as information costs?
References
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291. https://doi.org/10.2307/1914185
Saros, D. E. (2020). Principles of political economy: A pluralistic approach to economic theory (3rd ed.). Valparaiso University.
Thaler, R. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior & Organization, 1(1), 39-60. https://doi.org/10.1016/0167-2681(80)90051-7
DBA 8020 Module 1 instructions, in plain terms
DBA-8020 grades six discussions, together 30 percent of the grade, plus three written assignments, two synchronous events and a final project in three parts. The text is Saros's Principles of Political Economy, a pluralistic open textbook, along with assigned journal articles. This first forum evaluates consumer theory. Expect to explain the neoclassical model of consumer choice, test its assumptions against a real purchasing decision and draw on alternative perspectives, such as behavioral economics, to explain what the model misses. Reply to two classmates with questions that probe whether their examples fit the model. Choose a purchase you can observe, ideally with data, and say which assumption of the model it tests. Draw on at least one primary study from behavioral economics rather than popular summaries. Keep the post within the module's question. Cite the assigned articles.
How this DBA 8020 Module 1 example is built
The post opens with a product the neoclassical model predicts consumers should adopt. A paragraph sets out the model from the textbook. A paragraph reports pilot data showing low adoption. Two paragraphs apply prospect theory and mental accounting to explain the gap. A paragraph draws launch implications. The replies ask whether range anxiety reflects loss aversion and whether brand loyalty in generics is a failure of the model. The pilot's 31 percent adoption rate gives the post evidence to test the model against, and the launch implications show what the firm will do differently because of the behavioral findings. Both replies ask whether the classmate's case breaks the model or fits it.
Where the marks sit in the DBA 8020 Module 1 rubric
Mentors grade discussions on substantive posts that apply economic theory accurately, use of the textbook and assigned research, and replies that deepen classmates' analysis. Posts that test the model against real data, rather than describing it, show doctoral-level thinking. Using primary behavioral research to explain specific deviations demonstrates depth. Drawing a practical implication shows how theory informs decisions. Evidence from a real pilot, set against the model's prediction, shows the empirical turn doctoral work requires. Practical implications show how theory changes decisions. Replies that ask whether a classmate's case breaks the model keep the forum analytical. Primary studies, not summaries, carry the argument.
DBA 8020 Module 1 help: mistakes that cost marks
Students lose points by describing consumer theory without testing it, by treating behavioral findings as anecdotes or by replying with agreement. Others dismiss the neoclassical model entirely. Test the model against evidence. Name the assumption that fails. Use primary research to explain why. Ask classmates whether their cases fit or break the model. Bring data, even a small pilot, and say which assumption the data contradict. Explain what your firm will do differently because the model fails. A free first sample on your own DBA-8020 discussion post is available on request. Use one buying decision you can observe, such as a refill subscription, to test each assumption of the model.
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DBA 8020 Module 1 questions, answered
Where can I find a free DBA 8020 Module 1 sample paper?
Consumer theory tested against a refill subscription launch, with two replies, is the discussion above.
What does the neoclassical model of consumer choice assume?
That consumers have stable, complete preferences and choose the bundle that maximizes utility given prices and income.
What is loss aversion?
The tendency to weigh losses more heavily than equal gains, relative to a reference point.
What is mental accounting?
The practice of treating money differently depending on how it is categorized or framed.
What textbook does DBA-8020 use?
Saros's Principles of Political Economy: A Pluralistic Approach to Economic Theory, third edition.