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Public and Private Values

Publication ,  Journal Article
Ariely, D; Bracha, A; L'Huillier, JP
Published in: Journal of Behavioral Decision Making
December 1, 2016

In this paper, we experimentally examine whether looking at other people's pricing decisions is a type of a decision rule that people over-apply even when it is not applicable, as in the case of private-value goods. In Study 1, we find evidence that this is indeed the case—individual valuation of a subjective experience under full information, elicited using incentive compatible mechanism, is highly influenced by values of others. In Study 2, we find that people expect to use this rule to some degree with respect to actual consumption of goods, especially goods with some public value (music), and less so for private-value goods (noise). However, people expect to use the rule to a very large extent when they are required to express their valuation of a good using a dollar figure (Study 3). These results can shed light on price behavior as rigidities and rents. Copyright © 2015 John Wiley & Sons, Ltd.

Duke Scholars

Published In

Journal of Behavioral Decision Making

DOI

EISSN

1099-0771

ISSN

0894-3257

Publication Date

December 1, 2016

Volume

29

Issue

5

Start / End Page

550 / 555

Related Subject Headings

  • Social Psychology
  • 5204 Cognitive and computational psychology
  • 3507 Strategy, management and organisational behaviour
  • 3506 Marketing
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Ariely, D., Bracha, A., & L’Huillier, J. P. (2016). Public and Private Values. Journal of Behavioral Decision Making, 29(5), 550–555. https://doi.org/10.1002/bdm.1919
Ariely, D., A. Bracha, and J. P. L’Huillier. “Public and Private Values.” Journal of Behavioral Decision Making 29, no. 5 (December 1, 2016): 550–55. https://doi.org/10.1002/bdm.1919.
Ariely D, Bracha A, L’Huillier JP. Public and Private Values. Journal of Behavioral Decision Making. 2016 Dec 1;29(5):550–5.
Ariely, D., et al. “Public and Private Values.” Journal of Behavioral Decision Making, vol. 29, no. 5, Dec. 2016, pp. 550–55. Scopus, doi:10.1002/bdm.1919.
Ariely D, Bracha A, L’Huillier JP. Public and Private Values. Journal of Behavioral Decision Making. 2016 Dec 1;29(5):550–555.
Journal cover image

Published In

Journal of Behavioral Decision Making

DOI

EISSN

1099-0771

ISSN

0894-3257

Publication Date

December 1, 2016

Volume

29

Issue

5

Start / End Page

550 / 555

Related Subject Headings

  • Social Psychology
  • 5204 Cognitive and computational psychology
  • 3507 Strategy, management and organisational behaviour
  • 3506 Marketing