TESTING COMMITMENT COST THEORY IN CHOICE EXPERIMENTS

Claudia Bazzani, Vincenzina Caputo, Rodolfo M. Nayga, Jr, Maurizio Canavari

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

In choice experiments, it is commonly assumed that individuals make choices in static and certainty decision-making conditions. Real-world choices, however, are usually made in a dynamic setting. Committing a purchase decision under conditions of uncertainty might have a “Commitment Cost” (CC). In this study, we test CC theory using a nonhypothetical choice experiment. Specifically, we test whether choice behavior and willingness to pay estimates differ when individuals have the option to gain present or delayed information or reverse the transaction. Our results suggest that the construction of a dynamic decision context can be relevant in the design of choice experiments. (JEL C90, C93, Q18).

Original languageEnglish
Pages (from-to)383-396
Number of pages14
JournalEconomic Inquiry
Volume55
Issue number1
DOIs
Publication statusPublished - 2017 Jan 1

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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    Bazzani, C., Caputo, V., Nayga, Jr, R. M., & Canavari, M. (2017). TESTING COMMITMENT COST THEORY IN CHOICE EXPERIMENTS. Economic Inquiry, 55(1), 383-396. https://doi.org/10.1111/ecin.12377