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



Share Proceeding

Featured papers

See More

Featured

H10. No Pain, No Out-of-Box Thinking: An Examination of the Effects of Self-Threat on Creativity

Huan You, University of Manitoba, Canada
Fang Wan, University of Manitoba, Canada
Luke Zhu, University of Manitoba, Canada
Haiyang Yang, Johns Hopkins University

Read More

Featured

With or Without You: When Second Person Pronouns Engage Listeners

Grant M Packard, Wilfrid Laurier University, Canada
Jonah Berger, University of Pennsylvania, USA

Read More

Featured

Tuition Myopia: Temporal Discounting Induces a Myopic Focus on the Costs of Higher Education

Haewon Yoon, Indiana University, USA
Yang Yang, University of Florida, USA
Carey K. Morewedge, Boston University, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.