Order versus disorder – the impact on value estimates of durable consumption goods

David Koch, Simon Thaler and Ronny Mayr

Applied Economics Letters, 2021, vol. 28, issue 19, 1635-1640

Abstract: The purpose of this article is to investigate if easily removable disorder (i.e. a negative externality displayed in pictures) influences value estimates of two durable goods (car and apartment). We examine the effect with a 2 × 2 experimental setup consisting of 137 estimates from students. While we assume an influence of the disorder in the case of the car, there must not be any value influence in the apartment task. The first estimate of the car decreases by 11.9% in the case of disorder, but the effect does not decrease in the second estimation. For the apartment, the disorder effect reduces the estimates by 13.3%. In a second estimate, the effect on value weakens but still is present. The study shows that (i) images lead to an incorrect assessment and (ii) disorder is perceived differently for the two goods.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2020.1841081 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:28:y:2021:i:19:p:1635-1640

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2020.1841081

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().