Basic concepts: 2. Preference construction … · investment portfolio Decision-making rules of...
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Basic concepts: 2. Preference construction Anchoring effect ECON2548 New Directions in Economics • 2019-20 20 Results from Ariely’s experiment adapted from Poundstone (2010:137) Social security number Average price willing to pay $60 $50 $40 $30 $20 $10 $0 00-19 20-39 40-59 60-79 80-99 Outcomes: Effects of biases [print] Erta et al (2013) § Biases in consumer financial decisions § Classified under three groups – Preferences – Beliefs – Decision- making § Examples ECON2548 New Directions in Economics • 2019-20 21 1 2 3 Adapted from Erta et al 2013:7
Transcript of Basic concepts: 2. Preference construction … · investment portfolio Decision-making rules of...
Basic concepts: 2. Preference construction
Anchoring effect
ECON2548 New Directions in Economics • 2019-20 20
Results from Ariely’s experiment
adapted from Poundstone(2010:137)
Social security number
Aver
age
price
willi
ng to
pay
$60
$50
$40
$30
$20
$10
$000-19 20-39 40-59 60-79 80-99
Outcomes: Effects of biases [print]
Erta et al (2013)§ Biases in
consumer financial decisions
§ Classified under three groups– Preferences– Beliefs– Decision-
making§ Examples
ECON2548 New Directions in Economics • 2019-20 21
1 2 3
Adapted from Erta et al 2013:7
