Do Attractive People Get a Better Deal? An Experimental Study

Lyudmyla Starostyuk, Yan Lang and Kay-Yut Chen

International Journal of the Economics of Business, 2024, vol. 31, issue 2, 71-101

Abstract: The goal of our research is to shed light on the existence of an effect of seeing the images of human faces (i.e. “a face effect”) on economic decision-making behavior. We conduct a series of controlled experiments using photographs of human faces in a newsvendor setting. Our experimental data provides evidence that the human face plays the role of an environmental moderator which triggers and intensifies the social considerations. To gain a deeper understanding of behavioral responses, we examined the impact of faces with varying characteristics, with a particular focus on the effects of facial attractiveness and perceived gender. We find that the decision-makers systematically deviate from their choices of wholesale prices when they imagine seeing the counterpart’s face. To explain how facial attractiveness and gender affect the decision choices, we develop a behavioral model that incorporates altruistic and fairness concerns.

Date: 2024
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DOI: 10.1080/13571516.2024.2304417

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