Does fear create a bias in favor of high-priced stocks? An analysis of the S&P 500 stock prices during the COVID-19 market crash showed that high-priced stocks outperformed low-priced ones (Study 1). Experimental data further confirmed that fear induced by thoughts about the pandemic increased...

As processing difficulty associated with a product increases, information about a subsequently encountered product becomes easier to process, leading to more favorable evaluations of it (a contrast effect). If, however, the two products are categorized as part of the same overall experience,...