Salience and Consumer Choice

Pedro Bordado, Nicola Gennaioli and Andrei Shleifer

No 501, Working Papers from Barcelona School of Economics

Abstract: We present a theory of context-dependent choice in which a consumer's attention is drawn to salient attributes of goods, such as quality or price. An attribute is salient for a good when it stands out among the good's attributes, relative to that attribute's average level in the choice set (or generally, the evoked set). Consumers attach disproportionately high weight to salient attributes and their choices are tilted toward goods with higher quality/price ratios. The model accounts for a variety of disparate evidence, including decoy effects, context-dependent willingness to pay, and large shifts in demand in response to price shocks.

Keywords: salience; consumer choice (search for similar items in EconPapers)
JEL-codes: D03 D81 (search for similar items in EconPapers)
Date: 2015-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Salience and Consumer Choice (2013)
Working Paper: Salience and Consumer Choice (2013)
Working Paper: Salience and Consumer Choice (2012)
Working Paper: Salience and Consumer Choice (2012)
Working Paper: Salience and consumer choice (2012)
Working Paper: Salience and Consumer Choice
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