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The Scarcity Bias: Some Theoretical Notes

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  • Luigi Mittone

    ()

  • Ivan Soraperra

    ()

Abstract

The bias generated by the subjective perception of scarcity on the consumer's choice is discussed from a theoretical perspective. The core idea here discussed is that scarcity is an Lancasterian attribute of the goods which is not endogenously built in the goods, like many physical attributes, color, weight, etc. but which is dependent from the context where the good is consumed. The exogenously nature of scarcity requires a specific theoretical treatment which is here attempted

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Bibliographic Info

Paper provided by Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia in its series CEEL Working Papers with number 0603.

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Date of creation: 2006
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Handle: RePEc:trn:utwpce:0603

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