Economics at your fingertips  

Price salience in opinion polls and observed behavior: The case of Spanish cinema

Sara Suarez-Fernandez, Maria J. Perez-Villadoniga and Juan Prieto-Rodriguez ()

Economic Modelling, 2022, vol. 111, issue C

Abstract: In the market system, a necessary condition for equilibrium is that prices convey all relevant information. However, apparently biased responses about prices in survey polls may cast doubt on the way consumers understand prices. It has been argued that survey answers, based on salient aspects of products, are mostly driven by intuition and may be inaccurate. To investigate this, we take advantage of a VAT rise on cultural products that took place in Spain in 2012. Cinema prices were expected to increase substantially, but the tax was eventually absorbed by exhibitors, keeping average prices unchanged. Using the Spanish Survey on Cultural Habits and Practices (2010–2011 and 2014–2015), we find that, as price salience increased, declared concern with prices rose. However, average prices did not change and cinema attendance, which involves more deliberation, remained stable. Therefore, expenditure decisions, grounded on reflective thinking, rule out potentially biased elements of price perceptions.

Keywords: Response bias; Consumer behavior; Tax changes; Survey responses; Cinema; Price salience (search for similar items in EconPapers)
JEL-codes: D12 D91 Z11 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/j.econmod.2022.105848

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2023-06-15
Handle: RePEc:eee:ecmode:v:111:y:2022:i:c:s0264999322000943