Irrelevant Outside Options Influence the Value of Money

Stephen Spiller, UCLA, USA
Dan Ariely, Duke University, USA
Normatively, money’s value is determined by the marginal unit of consumption it can buy. We show that irrelevant less valuable products influence the perceived value of a medium of exchange. Irrelevant attractive options increase a medium’s value whereas irrelevant unattractive options decrease a medium’s value.
[ to cite ]:
Stephen Spiller and Dan Ariely (2011) ,"Irrelevant Outside Options Influence the Value of Money", 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: 268.