Hindsight Value: Failed Transactions Inform Willingness to Pay
We find that transaction failures inform consumers’ valuation of goods. Buyers recognize the surplus utility of goods in hindsight: initial failure to acquire a good increases their subsequent WTP for it. Further, as failure to sell decreases owners’ WTA, hindsight valuation bridges the WTP-WTA gap and allows for successful exchanges.
Citation:
Masha Ksendzova, Carey K. Morewedge, and Dan Ariely (2018) ,"Hindsight Value: Failed Transactions Inform Willingness to Pay", in NA - Advances in Consumer Research Volume 46, eds. Andrew Gershoff, Robert Kozinets, and Tiffany White, Duluth, MN : Association for Consumer Research, Pages: 328-332.
Authors
Masha Ksendzova, Boston University, USA
Carey K. Morewedge, Boston University, USA
Dan Ariely, Duke University, USA
Volume
NA - Advances in Consumer Research Volume 46 | 2018
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