Effects of price of zero on decision making: An attempt to generalize human’s irrational behavior to price of zero

Atsuo Murata; Yasunari Matsushita; Makoto Moriwaka

doi:10.1007/978-3-319-41636-6_9

Effects of price of zero on decision making: An attempt to generalize human’s irrational behavior to price of zero

Atsuo Murata, Yasunari Matsushita, Makoto Moriwaka

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

When (a − 1)X = Z, the zero-price effect was observed only for (a: large, X: small) and (a: small, X: small). When X was small, the zero-price effect was observed irrespective of the value of a. When X was large, the zero-price effect was not observed. Human behavior tend to deviate from irrational behavior assumed in traditional economics for small values of X irrespective of a. The price of zero must be irrationally chosen due to the overestimation of price of zero. When (a − 1)X > Z, the zero-price effect was observed only for (a: large, X: large) and (a: large, X: small). When a was large, the zero-price effect was observed irrespective of whether X was large or small. When a was small, the zero-price effect was not observed. Human behavior tend to deviate from irrational behavior assumed in traditional economics for large values of a irrespective of the value of a. In this manner, it has been indicated that the zero-price effect is not necessarily observable and holds under limited conditions.

Original language	English
Title of host publication	Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016
Publisher	Springer Verlag
Pages	109-116
Number of pages	8
Volume	480
ISBN (Print)	9783319416359
DOIs	https://doi.org/10.1007/978-3-319-41636-6_9
Publication status	Published - 2017
Event	International Conference on Cross Cultural Decision Making, CCDM 2016 - Walt Disney World, United States Duration: Jul 27 2016 → Jul 31 2016

Publication series

Name	Advances in Intelligent Systems and Computing
Volume	480
ISSN (Print)	21945357

Other

Other	International Conference on Cross Cultural Decision Making, CCDM 2016
Country/Territory	United States
City	Walt Disney World
Period	7/27/16 → 7/31/16

Keywords

Cognitive bias
Decision making
Irrational behavior
Price of zero

ASJC Scopus subject areas

Control and Systems Engineering
Computer Science(all)

Access to Document

10.1007/978-3-319-41636-6_9

Cite this

Murata, A., Matsushita, Y., & Moriwaka, M. (2017). Effects of price of zero on decision making: An attempt to generalize human’s irrational behavior to price of zero. In Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016 (Vol. 480, pp. 109-116). (Advances in Intelligent Systems and Computing; Vol. 480). Springer Verlag. https://doi.org/10.1007/978-3-319-41636-6_9

Effects of price of zero on decision making : An attempt to generalize human’s irrational behavior to price of zero. / Murata, Atsuo; Matsushita, Yasunari; Moriwaka, Makoto.

Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016. Vol. 480 Springer Verlag, 2017. p. 109-116 (Advances in Intelligent Systems and Computing; Vol. 480).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Murata, A, Matsushita, Y & Moriwaka, M 2017, Effects of price of zero on decision making: An attempt to generalize human’s irrational behavior to price of zero. in Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016. vol. 480, Advances in Intelligent Systems and Computing, vol. 480, Springer Verlag, pp. 109-116, International Conference on Cross Cultural Decision Making, CCDM 2016, Walt Disney World, United States, 7/27/16. https://doi.org/10.1007/978-3-319-41636-6_9

Murata A, Matsushita Y, Moriwaka M. Effects of price of zero on decision making: An attempt to generalize human’s irrational behavior to price of zero. In Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016. Vol. 480. Springer Verlag. 2017. p. 109-116. (Advances in Intelligent Systems and Computing). doi: 10.1007/978-3-319-41636-6_9

Murata, Atsuo ; Matsushita, Yasunari ; Moriwaka, Makoto. / Effects of price of zero on decision making : An attempt to generalize human’s irrational behavior to price of zero. Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016. Vol. 480 Springer Verlag, 2017. pp. 109-116 (Advances in Intelligent Systems and Computing).

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Effects of price of zero on decision making: An attempt to generalize human’s irrational behavior to price of zero

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