"Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences

Ariely, Dan; Loewenstein, George; Prelec, Dražen

doi:10.1162/00335530360535153

Cited by 1,177 publications

(859 citation statements)

References 36 publications

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“…An anchor acts as a point of reference to base our decisions on and it does not have to be consciously processed. Asking a group of students to write down their social security number showed that this random piece of information is enough to create a reference during an anonymous, independent auction (Ariely et al 2003). Those students who had a higher number were inclined to make higher bids than the ones with lower numbers.…”

Section: Anchoringmentioning

confidence: 99%

“…Furthermore, we evaluated arbitrary anchors, as shown in one of numerous experiments from e.g. Ariely et al (2003), through a questionnaire which formed the end of each session. Our intention was to evaluate whether the last two digits of the telephone number of the subjects functioned as anchors and subsequently influenced their reported savings behavior.…”

Section: T1mentioning

confidence: 99%

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Towards Leveraging Behavioral Economics in Mobile Application Design

Stockinger

Koelle

Lindemann

et al. 2014

Gamification in Education and Business

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People do not always think and behave rationally. Behavioral economics has produced theories to explain when and why people make such allegedly irrational decisions, for example if it comes to spending money. However, humans tend to use reference points to judge and decide. Nowadays, mobile devices can work as flexible tools to create reference points thus supporting decisions without being explicit about it. We discuss if and how mobile apps can influence decision making. As a consequence, apps can be built to better fit into the decision making progress. We argue that applying concepts from behavioral economics can increase user experience in a subtle manner.

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Section: Anchoringmentioning

confidence: 99%

Section: T1mentioning

confidence: 99%

Towards Leveraging Behavioral Economics in Mobile Application Design

Stockinger

Koelle

Lindemann

et al. 2014

Gamification in Education and Business

View full text Add to dashboard Cite

show abstract

“…2 . In fact, this is just another form of the cost function, where "mental costs" are exchanged for "making mistakes".…”

Section: Guiding Principlesmentioning

confidence: 99%

Either, Or: Exploration of an Emerging Decision Theory

Fioretti

2011

SSRN Journal

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A novel decision theory is emerging out of sparse findings in economics, mathematics and, most importantly, psychology and computational cognitive science. It rejects a fundamental assumption of the theory of rational decision-making, namely, that uncertain belief rests on independent assessment of utility and probability, and includes envisioning possibilities within its scope. Several researchers working with these premises, independently of one another, arrived at the conclusion that decision is made by highlighting the positive features of the alternative that will be chosen while opposing it to a loosing alternative, whose unpleasant aspects have been stressed. This article frames together contributions from different disciplines, often unknown to one another, with the hope of improving the coordination of research efforts. Furthermore, it discusses the status of the novel theory with respect to our current idea of rationality.

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“…Slovic 1995;Ariely et al 2003Ariely et al , 2006. For example Ariely et al (2003) Ellingson et al 2009, Hanley et al 2009, Mahiue et al 2012.…”

Section: Introductionmentioning

confidence: 99%

“…Slovic 1995;Ariely et al 2003Ariely et al , 2006. For example Ariely et al (2003) Ellingson et al 2009, Hanley et al 2009, Mahiue et al 2012. In this context, it is worth noting that answers from a single open-ended CV question are a static representation of respondent uncertainty, which differs somewhat from the dynamic effects in CA, where choices are consistent over time, leading to reduced randomness with more decisions.…”

Section: Introductionmentioning

confidence: 99%

Intra-respondent Heterogeneity in a Stated Choice Survey on Wetland Conservation in Belarus: First Steps Towards Creating a Link with Uncertainty in Contingent Valuation

Hess

Giergiczny

2014

Environ Resource Econ

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Applications of discrete choice models in environmental valuation increasingly use a random coefficient specification, such as mixed logit, to represent taste heterogeneity. The majority of applications rely on data containing multiple observations for each respondent, where a common assumption is that tastes stay constant across choices for the same respondent.We question this assumption and make use of a model developed in the transport field which allows tastes to vary over choices for each consumer in addition to variation acrossconsumers. An empirical analysis making use of a stated choice dataset for wetland conservation in Belarus shows that superior performance is obtained by allowing jointly for the two types of heterogeneity and that recovery of these intra-respondent variations is not possible using standard approaches, such as allowing for scale heterogeneity across tasks.We show also that intra-respondent heterogeneity can be especially high for attributes which respondents are unfamiliar with, and that a failure to account for it can substantially 2 affect welfare estimates. We interpret this as an indication that this heterogeneity relates primarily to uncertainty. Finally, we offer initial insights into the relationship between intrarespondent heterogeneity and findings on uncertainty in a contingent valuation context.

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"Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences

Cited by 1,177 publications

References 36 publications

Towards Leveraging Behavioral Economics in Mobile Application Design

Towards Leveraging Behavioral Economics in Mobile Application Design

Either, Or: Exploration of an Emerging Decision Theory

Intra-respondent Heterogeneity in a Stated Choice Survey on Wetland Conservation in Belarus: First Steps Towards Creating a Link with Uncertainty in Contingent Valuation

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