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	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

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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). https://doi.org/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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