Universität zu Köln

Dertwinkel-Kalt, Markus, Koehler, Katrin, Lange, Mirjam R. J. and Wenzel, Tobias (2017). DEMAND SHIFTS DUE TO SALIENCE EFFECTS: EXPERIMENTAL EVIDENCE. J. Eur. Econ. Assoc., 15 (3). S. 626 - 654. OXFORD: OXFORD UNIV PRESS. ISSN 1542-4774

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Abstract

We conduct a laboratory experiment that tests two fundamental predictions unique to salience theory. If an agent purchases one of two vertically differentiated products, salience theory makes the following two distinct predictions. First, it hypothesizes that a higher expected price level for both products shifts demand toward the more expensive, high-quality product. Second, it predicts that demand for the high-quality product is larger if the price level is expectedly high than if it is unexpectedly high. In our experiment, subjects purchased fast or slow Internet access at different price levels. Our results strongly support both predictions of salience theory.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Dertwinkel-Kalt, Markus UNSPECIFIED UNSPECIFIED UNSPECIFIED Koehler, Katrin UNSPECIFIED UNSPECIFIED UNSPECIFIED Lange, Mirjam R. J. UNSPECIFIED UNSPECIFIED UNSPECIFIED Wenzel, Tobias UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-226227
DOI:	10.1093/jeea/jvw012
Journal or Publication Title:	J. Eur. Econ. Assoc.
Volume:	15
Number:	3
Page Range:	S. 626 - 654
Date:	2017
Publisher:	OXFORD UNIV PRESS
Place of Publication:	OXFORD
ISSN:	1542-4774
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language CONSUMER CHOICE; SELECTION; TAXATION; QUALITY; DECOY; RISK Multiple languages Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/22622