Consumer risk preferences over income are derived from the optimal consumption bundle purchased at each income, via the construction of an indirect uility function. The paper shows that, even though an individual may exhibit risk averse preferences over a wide income range, consumer theory predicts that the opportunity to acquire high-priced luxury goods can induce a convexity in the indirect u...

In order to match shoppers with desired products and provide personalized promotions, whether in online or offline shopping worlds, it is critical to model both consumer preferences and price sensitivities simultaneously. Personalized preferences have been thoroughly studied in the field of recommender systems, though price (and price sensitivity) has received relatively little attention. At th...