Robustness of the attraction effect in consumer choice and its consequences for the firms

8/11/2019 Robustness of the attraction effect in consumer choice and its consequences for the firms

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A A A A


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A A A A

A A A A


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(A, B, C) (a, a, c) E(min(pA, pB)) E(pC)


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yoijm = upjm+upjm jm+upjm jm+ . . .

/


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0

20

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60

80

Frequency

-40% -20% 0% 20% 40%Estimated penalty

3-menus

0

20

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60

80

Frequency

-40% -20% 0% 20% 40%

6-menus

Random Naive Dominance

Dislike NCO Asym. Dom.


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-40%

-20%

0%

20%

40%

Pe

nalty

91011121314

Payoff in menus without comparable offers

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-40%

-20%

0%

20%

40%

Pe

nalty

91011121314

Payoff in menus without comparable offers

6-menus


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i

pi

= { , e}

v+ e v v

v v+ e v

v v v+ e


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j

i

v+ jpi

v+ j NCOi pi( + NCOi X)

NCOi = i

X >

X


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X= )

= %

X= %

=

%

X=

% = %

X=

%

= %

X=

%


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()

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http://tinyurl.com/science-slam-jena


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Robustness of the attraction effect in consumer choice and its consequences for the firms

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