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Do consumers prefer offers that are easy to compare? An experimental investigation

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  • Paolo Crosetto

    ()
    (Max Planck Institute for Economics, Jena)

  • Alexia Gaudeul

    ()
    (Graduate School "Human Behavior in Social and Economic Change" (GSBC), Friedrich Schiller University, Jena)

Abstract

Consumers make mistakes when facing complex purchasing decision problems but if at least some consumers choose only among offers that are easy to compare with others then firms will adopt common ways to present their offers and thus make choice easier (Gaudeul and Sugden, 2011). We design an original experiment to identify consumers' choice heuristics in the lab. Subjects are presented with menus of offers and do appear to favour offers that are easy to compare with others in the menu. While not all subjects do so, this is enough to deter firms from introducing spurious complexity in the way they present products.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2011-044.

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Date of creation: 12 Oct 2011
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Handle: RePEc:jrp:jrpwrp:2011-044

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Related research

Keywords: Bounded Rationality; Cognitive Limitations; Common Standards; Consumer Choice; Experimental Economics; Heuristics; Libertarian Paternalism; Pricing Formats; Spurious Complexity;

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Cited by:
  1. Johannes Abeler & Simon Jäger, 2013. "Complex Tax Incentives - An Experimental Investigation," CESifo Working Paper Series 4231, CESifo Group Munich.

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