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Losing more than gaining from overall stable prices: The differential perception of increasing versus decreasing prices made the Euro look like a price booster

Greitemeyer, Tobias and Greifeneder, Rainer. (2008) Losing more than gaining from overall stable prices: The differential perception of increasing versus decreasing prices made the Euro look like a price booster. European Journal of Social Psychology, 38 (5). pp. 786-799.

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Official URL: http://edoc.unibas.ch/48797/

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Abstract

The present research examined whether price trend misperceptions can be explained by the differential perception of increasing versus decreasing prices. We expected price increases (losses to consumers) to be perceived as being more intense than price decreases (gains to consumers) of the same magnitude. This tendency, in turn, should be positively associated with how people perceive the overall price trend. To test this reasoning, participants in the first two studies were asked to compare German Mark (DM) and Euro prices. First, participants received a menu containing 21 dishes with DM prices, and their price trend expectations were assessed. Then, participants indicated for each dish to what extent the price had changed. Finally, participants' overall price trend judgments were assessed. In both studies, results indicate that price trend judgments were biased toward rising prices. In addition, price increases were perceived as rising more than price decreases of the same magnitude were perceived as falling. This tendency was positively associated with overall price trend judgments, even after controlling for expectations. Study 3 was to replicate these findings in a different domain to demonstrate the general nature and impact of the hypothesized effect.
Faculties and Departments:07 Faculty of Psychology > Departement Psychologie > Forschungsbereich Sozial-, Wirtschafts- und Entscheidungspsychologie > Sozialpsychologie (Greifeneder)
UniBasel Contributors:Greifeneder, Rainer
Item Type:Article, refereed
Article Subtype:Research Article
Publisher:Wiley
ISSN:0046-2772
e-ISSN:1099-0992
Note:Publication type according to Uni Basel Research Database: Journal article -- This is the peer reviewed version of the following article: Greitemeyer, Tobias and Greifeneder, Rainer. (2008) Losing more than gaining from overall stable prices: The differential perception of increasing versus decreasing prices made the Euro look like a price booster. European Journal of Social Psychology, 38 (5). pp. 786-799, which has been published in final form at [see DOI]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Language:English
Identification Number:
Last Modified:06 Apr 2018 08:50
Deposited On:20 Apr 2017 08:35

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