Pavlovian Processes in Consumer Choice: The Physical Presence of a Good Increases Willingness-to-Pay

Benjamin Bushong, Lindsay M. King, Colin Camerer () and Antonio Rangel

American Economic Review, 2010, vol. 100, issue 4, 1556-71

Abstract: This paper describes a series of laboratory experiments studying whether the form in which items are displayed at the time of decision affects the dollar value that subjects place on them. Using a Becker-DeGroot auction under three different conditions — (i) text displays, (ii) image displays, and (iii) displays of the actual items — we find that subjects' willingness-to-pay is 40-61 percent larger in the real than in the image and text displays. Furthermore, follow-up experiments suggest the presence of the real item triggers preprogrammed consummatory Pavlovian processes that promote behaviors that lead to contact with appetitive items whenever they are available. (JEL C91, D03, D12, D87)

JEL-codes: C91 D03 D12 D87 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/aer.100.4.1556
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Citations: View citations in EconPapers (39)

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