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judgment and decision making literature identifies three heuristics that manifest in many everyday judgments and decisions … - anchoring, representativeness, and availability. We suggest that these heuristics also influence judgments consumers make … concerning the magnitude of prices. We discuss three specific instances of these heuristics: the left-digit anchoring effect, the …
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We use more than 63,000 datapoints from a German used car market website to document systematic and substantial price drops at vintage (= year of first registration) thresholds and 10,000 km odometer marks. The latter finding replicates the findings in Lacetera et al. (2012), whereas the first...
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-processing heuristics matter also in markets with large stakes and easily observed information …
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In this article we propose a two stage procedure to model demand decisions by customers who are balancing several dimensions of a product. We then test our procedure by analyzing the behavior of buyers from an Austrian price comparison site. Although in such a market a consumer will typically...
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