Common consequence effects in pricing and choice
This paper presents an experimental study of common consequence effects in binary choice, willingness-to-pay (WTP) elicitation, and willingness-to-accept (WTA) elicitation. We find strong evidence in favor of the fanning out hypothesis (Machina, Econometrica 50:277-323, 1982) for both WTP and WTA. I...
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| Main Authors: | , |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
2014
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| In: |
Theory and decision
Year: 2013, Volume: 76, Issue: 1, Pages: 1-7 |
| ISSN: | 1573-7187 |
| DOI: | 10.1007/s11238-012-9349-9 |
| Online Access: | Verlag, Volltext: https://doi.org/10.1007/s11238-012-9349-9
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| Author Notes: | Ulrich Schmidt, Stefan T. Trautmann |
| Summary: | This paper presents an experimental study of common consequence effects in binary choice, willingness-to-pay (WTP) elicitation, and willingness-to-accept (WTA) elicitation. We find strong evidence in favor of the fanning out hypothesis (Machina, Econometrica 50:277-323, 1982) for both WTP and WTA. In contrast, the choice data do not show a clear pattern of violations in the absence of certainty effects. Our results underline the relevance of differences between pricing and choice tasks, and their implications for models of decision making under risk. |
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| Item Description: | First online: 04 January 2013 Gesehen am 10.05.2019 |
| Physical Description: | Online Resource |
| ISSN: | 1573-7187 |
| DOI: | 10.1007/s11238-012-9349-9 |