Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55640
Authors: 
Ariely, Dan
Bracha, Anat
L'Huillier, Jean-Paul
Year of Publication: 
2010
Series/Report no.: 
Working paper series // Federal Reserve Bank of Boston 10-5
Abstract: 
This paper experimentally examines whether looking at other people´s pricing decisions is a type of heuristic - a decisionmaking rule - that people use even when it is not applicable, as in the case of clearly private value goods. We find evidence that this indeed is the case - an individual´s valuation of a purely subjective experience under full information, elicited using an incentive compatible mechanism, is highly influence by valuations made by others. This result can shed light on price behavior, price rigidities, and rents.
JEL: 
J64
E24
J11
Document Type: 
Working Paper

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