The Freedom Bias: Empirical Evidence For a Neglected Tariff-Choice Anomaly

Sören Köcher, TU Dortmund University, Germany
Till Dannewald, University of Goettingen, Germany
This research introduces a previously disregarded tariff-choice anomaly, namely the freedom bias. This bias refers to the decision makers’ preference for short-term tariffs although a long-term tariff would minimize total costs over time. Results of two studies systematically evidence this biased tariff choice in favor of contracts with short durations.
[ to cite ]:
Sören Köcher and Till Dannewald (2013) ,"The Freedom Bias: Empirical Evidence For a Neglected Tariff-Choice Anomaly ", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.