An exploratory analysis of composite choices: Weighing rationality versus irrationality

Lester, Bijou Yang

doi:10.1016/j.socec.2011.08.024

Cited by 7 publications

(5 citation statements)

References 75 publications

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“…This view of rational choice posits that decision makers act consistently with regard to their preferences, regardless of the nature of these preferences. This view of rational choice is thus able to incorporate a wide range of commonly observed choice anomalies: The fact that customers, for example, do not regularly check prices before purchases-an apparent example of irrationality (Lester, 2011)-does not at all, to be clear, violate rationality: the costs of collecting and evaluating price information probably outweigh potential savings. Likewise: the fact that managerial pricing actions are shortsighted at times does not, in principle, indicate non-rational behavior: the short-term, more likely, gains of these activities (e.g., price cuts) outweigh the perceived long-term, less likely, costs.…”

Section: Behavioral and Psychological Aspects Of Pricing-what We Knowmentioning

confidence: 99%

Violations of rational choice principles in pricing decisions

Hinterhuber¹

2015

Industrial Marketing Management

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Section: Behavioral and Psychological Aspects Of Pricing-what We Knowmentioning

confidence: 99%

Violations of rational choice principles in pricing decisions

Hinterhuber¹

2015

Industrial Marketing Management

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“…In understanding buyer behavior, dual‐process frameworks provide a comprehensive account of decision‐making processes by modeling both cognitions and emotions as choice determinants. The reasoning underlying dual‐process frameworks is that both cognitive and emotive factors that are germane to the research context concomitantly influence choice throughout the decision‐making process (Hansen, ; Lester, ); thus, modeling either emotions or cognitions solely as choice antecedents would leave meaningful variance unexplained (van Gelder, de Vries, & van der Pligt, ).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Determinants and Outcomes of Online Brand Tribalism: Exploring Communities of Massively Multiplayer Online Role Playing Games (MMORPGs)

Badrinarayanan¹,

Sierra²,

Taute

2014

Psychol. Mark.

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Online consumption communities, involving millions of online consumers, have been created around massively multiplayer online role playing games (MMORPGs). Within these communities, players who share interest in MMORPGs convene, interact, and collaborate with fellow players and achieve game‐related outcomes. As these online social networks have been noted to augment, and perhaps supplant person‐to‐person interaction, this study focuses on the drivers of inherent interpersonal relationships, the nature of the constructed society, and resulting consumer initiatives to sustain and nurture the organization. Specifically, this research suggests that MMORPG communities transcend more facile forms of online or brand communities and demonstrate characteristics that can most aptly be construed as brand tribalism in the anthropological sense. Here, the challenge and telepresence innate in playing MMORPGs, cognitive and affective involvement associated with MMORPGs, and commitment to MMORPGs are modeled as antecedents of brand tribalism or a sense of the relationship with the brand and MMORPG community. Consequently, intent to purchase MMORPG‐related virtual products, recruitment of other MMORPG players, and word of mouth are identified as consequences of this unique consumer–brand relationship. Further analysis reveals the negatively charged emotional measure (i.e., defense of the tribe) within the tribalism instrument explains more variance in the outcome variables than the positively charged emotional measures (i.e., lineage, social, sense of community). Implications and future research directions are offered.

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“…Each experiment was divided into 5 phases: Computer Opponent phase, where participants played the Prisoner’s Dilemma (PD) ( Table 1 ) and Ultimatum Game (UG) with a computer using a Nash equilibrium strategy each round: 0.85 probability for PD; uniform distribution [ 1 , 5 ] as offer for UG (out of 10). People Game phase, where participants played the PD ( Table 1 ) and UG with a random human partner.…”

Section: Methodsmentioning

confidence: 99%

“…Computer Opponent phase, where participants played the Prisoner’s Dilemma (PD) ( Table 1 ) and Ultimatum Game (UG) with a computer using a Nash equilibrium strategy each round: 0.85 probability for PD; uniform distribution [ 1 , 5 ] as offer for UG (out of 10).…”

Section: Methodsmentioning

confidence: 99%

“…Acts of “irrational” generosity to others at one’s own cost are rewarded through non-economic means such as a subjective sense of satisfaction and a conferral of social status from others. Notable patterns of human behavior that fit this mold—and that result in prosocial outcomes—include “economic irrationality” [ 3 – 5 ], sustainable cooperation [ 6 – 8 ], inequity aversion [ 9 – 11 ], and altruism [ 12 , 13 ] in a social environment.…”

Section: Introductionmentioning

confidence: 99%

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Sociality as a Natural Mechanism of Public Goods Provision

et al. 2015

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In the recent literature, several hypotheses have been offered to explain patterns of human behavior in social environments. In particular, these patterns include ‘prosocial’ ones, such as fairness, cooperation, and collective good provision. Psychologists suggest that these prosocial behaviors are driven not by miscalculations, but by salience of social identity, in-group favoritism, emotion, or evolutionary adaptations. This paper imports psychology scholarship into an economic model and results in a sustainable solution to collective action problems without any external enforcement mechanisms. This natural mechanism of public goods provision is created, analyzed, and observed in a controlled laboratory environment using experimental techniques.

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An exploratory analysis of composite choices: Weighing rationality versus irrationality

Cited by 7 publications

References 75 publications

Violations of rational choice principles in pricing decisions

Violations of rational choice principles in pricing decisions

Determinants and Outcomes of Online Brand Tribalism: Exploring Communities of Massively Multiplayer Online Role Playing Games (MMORPGs)

Sociality as a Natural Mechanism of Public Goods Provision

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