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

M1. How Rewarding is Your Rewards Program? Experiential vs. Material Rewards

Ayalla Ruvio, Michigan State University, USA
Farnoosh Khodakarami, Michigan State University, USA
Clay Voorhees, Michigan State University, USA

Read More

Featured

Visual Perceptual Research in Marketing

Kevin L. Sample, University of Georgia, USA
Henrik Hagtvedt, Boston College, USA
S. Adam Brasel, Boston College, USA

Read More

Featured

Small but Sincere: The Impact of Firm Size and Gratitude on the Effectiveness of Cause-Marketing Campaigns

Eline L.E. De Vries, University Carlos III Madrid
Lola C. Duque, University Carlos III Madrid

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.