Easy on the Mind, Easy on the Wallet: Fluency Predicts Stock and Currency Valuation

Adam Alter, Princeton University, USA
Daniel Oppenheimer, Princeton University, USA
What makes items seem valuable? In six studies, we suggest that fluently (easily) processed currency instruments and financial stocks are valued more highly than their less fluent but otherwise similar counterparts. In Studies 1-3, participants perceived greater purchasing power in fluently processed forms of currency, and in Studies 4-6, we showed that stocks with simple names and ticker codes outperformed their disfluently named stocks in the New York Stock Exchange and American Exchange.
[ to cite ]:
Adam Alter and Daniel Oppenheimer (2009) ,"Easy on the Mind, Easy on the Wallet: Fluency Predicts Stock and Currency Valuation", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 198-201.