The Visual Acuity of Less: Why People Underestimate Increases But Not Decreases in Quantity

Pierre Chandon, INSEAD, France
Nailya Ordabayeva, Boston College, USA
While we know that quantity increases are strongly underestimated, we find that estimates of quantity decreases are almost perfect. This asymmetry is not caused by loss aversion but by the presence of a natural zero bound which makes downsizing estimation an interpolation task (and supersizing estimation an unbounded extrapolation task).
[ to cite ]:
Pierre Chandon and Nailya Ordabayeva (2016) ,"The Visual Acuity of Less: Why People Underestimate Increases But Not Decreases in Quantity", in NA - Advances in Consumer Research Volume 44, eds. Page Moreau and Stefano Puntoni, Duluth, MN : Association for Consumer Research, Pages: 410-411.