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 MoreFeatured
Individual-level Carryover-Parameters in Reference-Price Models
Ossama Elshiewy, University of Goettingen, Germany
Daniel Guhl, Humboldt-University Berlin
Featured
I'm Scared, Want to Listen? Fear's Influence on Self-Disclosure
Anupama Mukund Bharadwaj, University of Washington, USA
Lea Dunn, University of Washington, USA
Joey Hoegg, University of British Columbia, Canada
Featured
Changes in Social Values in the United States – 1976-2017: Is a New Age of Tribalism Emerging?
Eda Gurel-Atay, Independent Researcher
Johnny Chen, University of Oregon, USA
Wang Suk Suh, University of Oregon, USA
Lynn R. Kahle, University of Oregon, USA