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 | |
| 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 | United States |
| City | Walt Disney World |
| Period | 7/27/16 → 7/31/16 |
Fingerprint
Keywords
- Cognitive bias
- Decision making
- Irrational behavior
- Price of zero
ASJC Scopus subject areas
- Control and Systems Engineering
- Computer Science(all)
Cite this
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
}
TY - GEN
T1 - Effects of price of zero on decision making
T2 - An attempt to generalize human’s irrational behavior to price of zero
AU - Murata, Atsuo
AU - Matsushita, Yasunari
AU - Moriwaka, Makoto
PY - 2017
Y1 - 2017
N2 - 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.
AB - 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.
KW - Cognitive bias
KW - Decision making
KW - Irrational behavior
KW - Price of zero
UR - http://www.scopus.com/inward/record.url?scp=84986218217&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84986218217&partnerID=8YFLogxK
U2 - 10.1007/978-3-319-41636-6_9
DO - 10.1007/978-3-319-41636-6_9
M3 - Conference contribution
AN - SCOPUS:84986218217
SN - 9783319416359
VL - 480
T3 - Advances in Intelligent Systems and Computing
SP - 109
EP - 116
BT - Advances in Cross-Cultural Decision Making - Proceedings of the AHFE International Conference on Cross-Cultural Decision Making, CCDM 2016
PB - Springer Verlag
ER -