Publikation: Demand Shifts Due to Salience Effects: Experimental Evidence
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2017
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Dertwinkel-Kalt, Markus
Köhler, Katrin
Lange, Mirjam R. J.
Wenzel, Tobias
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Journal of the European Economic Association. Oxford University Press. 2017, 15(3), pp. 626-653. ISSN 1542-4766. eISSN 1542-4774. Available under: doi: 10.1093/jeea/jvw012
Zusammenfassung
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. (JEL: D03)
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DERTWINKEL-KALT, Markus, Katrin KÖHLER, Mirjam R. J. LANGE, Tobias WENZEL, 2017. Demand Shifts Due to Salience Effects: Experimental Evidence. In: Journal of the European Economic Association. Oxford University Press. 2017, 15(3), pp. 626-653. ISSN 1542-4766. eISSN 1542-4774. Available under: doi: 10.1093/jeea/jvw012BibTex
@article{DertwinkelKalt2017Deman-53461,
year={2017},
doi={10.1093/jeea/jvw012},
title={Demand Shifts Due to Salience Effects: Experimental Evidence},
number={3},
volume={15},
issn={1542-4766},
journal={Journal of the European Economic Association},
pages={626--653},
author={Dertwinkel-Kalt, Markus and Köhler, Katrin and Lange, Mirjam R. J. and Wenzel, Tobias}
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<dcterms:abstract xml:lang="eng">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. (JEL: D03)</dcterms:abstract>
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