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The Scarcity Bias

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Author Info
Luigi Mittone ()
Lucia Savadori ()

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Abstract

The bias generated by the subjective perception of scarcity on the consumer's choice is investigated using two separated experiments. The first experiment is aimed to define the prevailing preferences towards a set of commodities, the second experiment checked the effects produced by the perception that a given good is "scarce". The results shown a preference reversal phenomenon when scarcity is introduced in the experimental design. The results are coherent with a previous experiment (Mittone, Savadori, Rumiati, 2005) based on a developmental explanation of the basic scarcity bias and carried on a sample of children as participants.

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Publisher Info
Paper provided by Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia in its series CEEL Working Papers with number 0505.

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Date of creation: 2005
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Handle: RePEc:trn:utwpce:0505

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Related research
Keywords: Scarcity; Decision-making; Economic behavior;

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