EconPapers    
Economics at your fingertips  
 

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

Shiva Reddy Sai () and Kausik Gangopadhyay
Additional contact information
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
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.iimk.ac.in/websiteadmin/FacultyPublicat ... /2522268%20March.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:iik:wpaper:268

Access Statistics for this paper

More papers in Working papers from Indian Institute of Management Kozhikode IIMK Campus PO, Kunnamanagalam, Kozhikode, Kerala, India -673570. Contact information at EDIRC.
Bibliographic data for series maintained by Sudheesh Kumar ().

 
Page updated 2019-04-23
Handle: RePEc:iik:wpaper:268