Overestimating Others' Willingness to Pay

Shane Frederick

Journal of Consumer Research, 2012, vol. 39, issue 1, 1 - 21

Abstract: This article documents a widespread bias: a tendency to overestimate how much others will pay for goods. The effect may influence pricing and negotiations, which depend on accurate assessments of others' valuations. It is also shown to underlie or interact with several widely researched behavioral phenomena, including egocentric empathy gaps, the endowment effect, and the false-consensus effect.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:oup:jconrs:doi:10.1086/662060

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