Stable Context-Dependent Preferences? the Origin of Market Price-Dependent Valuations

Nina Mazar, University of Toronto, Canada
Botond Koszegi, UC Berkeley, USA
Dan Ariely, Duke University, USA
Individuals’ internal valuations can be extremely sensitive to other prices. We set out to determine whether this sensitivity is of rational or irrational origin. Our findings suggest that it is neither due to rational inferences, nor due to true context-dependent preferences; most likely it is a mistake individuals make.
[ to cite ]:
Nina Mazar, Botond Koszegi, and Dan Ariely (2011) ,"Stable Context-Dependent Preferences? the Origin of Market Price-Dependent Valuations", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 109-110.