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And suddenly, the rain! When surprises shape experienced utility

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  • Figini, Paolo
  • Leoni, Veronica
  • Vici, Laura

Abstract

This study examines how unexpected exogenous events, labelled as suprises, affect the utility of experience goods reported in online rating systems. Using over 300,000 reviews of accommodation services listed on Booking.com, the research investigates whether online ratings capture the impact of surprises related to meteorological conditions and whether they create additional biases in service evaluation. The study finds that sudden changes in weather conditions have a significant impact on experienced utility, with the effect varying based on the direction of the surprise. Additionally, in line with the hedonic adaption theory, we find that the duration of consumption moderates the surprise effect, reducing its impact on reported utility.

Suggested Citation

  • Figini, Paolo & Leoni, Veronica & Vici, Laura, 2024. "And suddenly, the rain! When surprises shape experienced utility," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 771-784.
    • Handle: RePEc:eee:jeborg:v:224:y:2024:i:c:p:771-784
    DOI: 10.1016/j.jebo.2024.06.026
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    More about this item

    Keywords

    Surprise; Weather bias; Experienced utility; Online reviews; Rating platforms;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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