The roles of planning, learning, and mental models in repeated dynamic decision making
Repeated search and decision making is a common consumer activity that should benefit from advanced planning. In three simulated shopping experiments, we find that people often fail to plan spontaneously or, when they do plan, do not use an appropriate mental model of the search problem. We also manipulate the mental models used by subjects and find that while our manipulation successfully encourages the development of appropriate mental models and improves performance when search costs are low, it does not result in the type of sophisticated mental model required to change strategies based on increased search costs. Finally, we show that the benefits of planning generalize to real world shopping behavior in a field experiment.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 122 (2013)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/obhdp |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Weitzman, Martin L, 1979.
"Optimal Search for the Best Alternative,"
Econometric Society, vol. 47(3), pages 641-54, May.
- George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
- Rook, Dennis W & Fisher, Robert J, 1995. " Normative Influences on Impulsive Buying Behavior," Journal of Consumer Research, University of Chicago Press, vol. 22(3), pages 305-13, December.
- Rami Zwick & Amnon Rapoport & Alison King Chung Lo & A. V. Muthukrishnan, 2003. "Consumer Sequential Search: Not Enough or Too Much?," Marketing Science, INFORMS, vol. 22(4), pages 503-519, October.
- Hey, John D & McKenna, Chris J, 1981. "Consumer Search with Uncertain Product Quality," Journal of Political Economy, University of Chicago Press, vol. 89(1), pages 54-66, February.
- Robert J. Meyer & Yong Shi, 1995. "Sequential Choice Under Ambiguity: Intuitive Solutions to the Armed-Bandit Problem," Management Science, INFORMS, vol. 41(5), pages 817-834, May.
- Amartya Sen, 1996.
"Maximization and the Act of Choice,"
Harvard Institute of Economic Research Working Papers
1766, Harvard - Institute of Economic Research.
- Rook, Dennis W, 1987. " The Buying Impulse," Journal of Consumer Research, University of Chicago Press, vol. 14(2), pages 189-99, September.
- Richard H. Thaler & Shlomo Benartzi, 2004. "Save More Tomorrow (TM): Using Behavioral Economics to Increase Employee Saving," Journal of Political Economy, University of Chicago Press, vol. 112(S1), pages S164-S187, February.
- Xavier Gabaix & David Laibson & Guillermo Moloche & Stephen Weinberg, 2006. "Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model," American Economic Review, American Economic Association, vol. 96(4), pages 1043-1068, September.
- Hsee, Christopher K, et al, 2003. " Medium Maximization," Journal of Consumer Research, University of Chicago Press, vol. 30(1), pages 1-14, June.
- Moorthy, Sridhar & Ratchford, Brian T & Talukdar, Debabrata, 1997. " Consumer Information Search Revisited: Theory and Empirical Analysis," Journal of Consumer Research, University of Chicago Press, vol. 23(4), pages 263-77, March.
- Robert J. Meyer & Arvind Sathi, 1985. "A Multiattribute Model of Consumer Choice During Product Learning," Marketing Science, INFORMS, vol. 4(1), pages 41-61.
- Eric J. Johnson & John W. Payne, 1985. "Effort and Accuracy in Choice," Management Science, INFORMS, vol. 31(4), pages 395-414, April.
- Beatty, Sharon E & Smith, Scott M, 1987. " External Search Effort: An Investigation across Several Product Categories," Journal of Consumer Research, University of Chicago Press, vol. 14(1), pages 83-95, June.
- Bearden, J. Neil & Connolly, Terry, 2007. "Multi-attribute sequential search," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 147-158, May.
- David I. Laibson & Andrea Repetto & Jeremy Tobacman, 1998. "Self-Control and Saving for Retirement," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1), pages 91-196.
- Tülin Erdem & Michael P. Keane, 1996. "Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets," Marketing Science, INFORMS, vol. 15(1), pages 1-20.
- Sonnemans, Joep, 1998. "Strategies of search," Journal of Economic Behavior & Organization, Elsevier, vol. 35(3), pages 309-332, April.
When requesting a correction, please mention this item's handle: RePEc:eee:jobhdp:v:122:y:2013:i:2:p:163-176. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.