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Temptation in purchasing decision: A Quasi Experiment to Validate the Set Betweenness axiom

Shiva Reddy Sai () and Kausik Gangopadhyay
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Shiva Reddy Sai: Indian Institute of Management Kozhikode

No 268, Working papers from Indian Institute of Management Kozhikode

Abstract: We examined the Set Betweenness axiom, the most crucial assumption in the literature studying Temptation and Self-control starting with the seminal work by Gul and Pessendorfer [1]. This axiom states that presence of a tempting alternative creates a self-control problem for the decision maker who prefers a menu that does not include the tempting alternative over a menu that does. We identified reduced price as a tempting alternative and conducted a quasi-experiment on 288 respondents. The respondents expressed their preference between menus or alternatives that contains a tempting good at a reduced price and/or that good at a non-reduced price. We chose ice cream and shirt as two different choices for goods. Our results demonstrate that that choice that is consistent with Set Betweenness Axiom is the most observed choice. Moreover, people with more familial wealth may have higher preference for commitment.

Keywords: Agricultural; Productivity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp
Date: 2018-03
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