IDEAS home Printed from https://ideas.repec.org/p/fip/fedbwp/05-10.html
   My bibliography  Save this paper

Tom Sawyer and the construction of value

Author

Listed:
  • Dan Ariely
  • George Loewenstein
  • Drazen Prelec

Abstract

This paper challenges the common assumption that economic agents know their tastes. After reviewing previous research showing that valuation of ordinary products and experiences can be manipulated by non-normative cues, we present three studies showing that in some cases people do not even have a pre-existing sense of whether an experience is good or bad – even when they have experienced a sample of it.

Suggested Citation

  • Dan Ariely & George Loewenstein & Drazen Prelec, 2005. "Tom Sawyer and the construction of value," Working Papers 05-10, Federal Reserve Bank of Boston.
  • Handle: RePEc:fip:fedbwp:05-10
    as

    Download full text from publisher

    File URL: http://www.bostonfed.org/economic/wp/wp2005/wp0510.htm
    Download Restriction: no

    File URL: http://www.bostonfed.org/economic/wp/wp2005/wp0510.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kahneman, Daniel & Ritov, Ilana & Schkade, David A, 1999. "Economic Preferences or Attitude Expressions?: An Analysis of Dollar Responses to Public Issues," Journal of Risk and Uncertainty, Springer, vol. 19(1-3), pages 203-235, December.
    2. Craig R. Fox & Amos Tversky, 1995. "Ambiguity Aversion and Comparative Ignorance," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 585-603.
    3. Shiller, Robert J., 1999. "Human behavior and the efficiency of the financial system," Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 20, pages 1305-1340 Elsevier.
    4. Keren, Gideon B. & Raaijmakers, Jeroen G. W., 1988. "On between-subjects versus within-subjects comparisons in testing utility theory," Organizational Behavior and Human Decision Processes, Elsevier, vol. 41(2), pages 233-247, April.
    5. Loewenstein, George & Thaler, Richard H, 1989. "Intertemporal Choice," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 181-193, Fall.
    6. Summers, Lawrence H, 1986. " Does the Stock Market Rationally Reflect Fundamental Values?," Journal of Finance, American Finance Association, vol. 41(3), pages 591-601, July.
    7. Eric J. Johnson & David A. Schkade, 1989. "Bias in Utility Assessments: Further Evidence and Explanations," Management Science, INFORMS, vol. 35(4), pages 406-424, April.
    8. Chapman, Gretchen B. & Johnson, Eric J., 1999. "Anchoring, Activation, and the Construction of Values, , , , , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 79(2), pages 115-153, August.
    9. Cass R. Sunstein & Daniel Kahneman & David Schkade & Ilana Ritov, 2001. "Predictably Incoherent Judgements," Discussion Paper Series dp273, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Microeconomics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedbwp:05-10. 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: (Catherine Spozio). General contact details of provider: http://edirc.repec.org/data/frbbous.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.