Reservation Price as a Range: An Incentive-Compatible Measurement Approach

Wang, Tuo; Venkatesh, R.; Chatterjee, Rabikar

doi:10.1509/jmkr.44.2.200

Cited by 128 publications

(123 citation statements)

References 73 publications

Supporting

Mentioning

110

Contrasting

Unclassified

Order By: Relevance

“…Since there is a range of plausible values that surrounds the target value, terminating the adjustment process as soon as one reaches a plausible value biases the estimate toward the anchor. This explanation is consistent with the idea that willingness to pay estimates are made under uncertainty because willingness to pay has been shown to be more accurately modeled as a range rather than a single value (Venkatesh & Chatterjee, 2007).…”

Section: Willingness To Pay As An Uncertain Judgment Is Subject To Ansupporting

confidence: 86%

The Z-Effect: Why Good Is Good, but Better Is Better

Huff¹

2014

IJMS

View full text Add to dashboard Cite

Most preference construction research studies the response mode of choice. While such research is important, relatively little preference construction research has addressed the implications of constructing willingness to pay. Understanding willingness to pay is important for pricing because choice does not necessarily produce the same results or insights as willingness to pay. This research begins to extend the current literature on the construction of willingness to payby investigating how it is influenced by the dispersion of quality in product menus. Two experiments demonstrate that willingness to pay is influenced by relative quality (i.e., an alternative's quality relative to other alternatives in the menu). Specifically, these two experiments demonstrate that willingness to pay for an alternative in a menu can be manipulated without changing the objective quality of those alternatives because willingness to pay is correlated with an alternative's quality z-score. This result is an artifact of the difficulty of translating psychological values (preferences) into numerical values (willingness to pay) combined with the comparative nature of the menu context.

show abstract

Section: Willingness To Pay As An Uncertain Judgment Is Subject To Ansupporting

confidence: 86%

The Z-Effect: Why Good Is Good, but Better Is Better

Huff¹

2014

IJMS

View full text Add to dashboard Cite

show abstract

“…Firstly, the two aforementioned studies on fairness in transit provision investigated stated preferences in reaction to hypothetical scenarios describing a favorable policy, which are susceptible to incentive compatibility bias and strategic response bias (Wang et al, 2007). Instead, we elicited revealed preference of actual transit use frequency and perceived burden associated with actual transit expenditure, which are bias free.…”

Section: Introductionmentioning

confidence: 99%

The relationship between young people׳s transit use and their perceptions of equity concepts in transit service provision

Kaplan

Silva²,

Ciommo

2014

Transport Policy

View full text Add to dashboard Cite

Theory of planned behavior Structural equation models a b s t r a c tThis study investigates the effect of price and travel mode fairness and spatial equity in transit provision on the perceived transit service quality, willingness to pay, and habitual frequency of use. Based on the theory of planned behavior, we developed a web-based questionnaire for revealed preferences data collection. The survey was administered among young people in Copenhagen and Lisbon to explore the transit perceptions and use under different economic and transit provision conditions. The survey yielded 499 questionnaires, analyzed by means of structural equation models. Results show that higher perceived fairness relates positively to higher perceived quality of transit service and higher perceived ease of paying for transit use. Higher perceived spatial equity in service provision is associated with higher perceived service quality. Higher perceived service quality relates to higher perceived ease of payment, which links to higher frequency of transit use.

show abstract

“…Forcing decision makers to choose among very finely-grained attribute levels likely leads to greater attribute weight instability since decision makers usually have a range of attribute levels they consider acceptable (Wang et al, 2007). We therefore reduce the number of continuous attribute levels by aggregating them to intervals.…”

Section: Estimating Attribute Weights From Product Configuration Procmentioning

confidence: 99%

A configuration-based recommender system for supporting e-commerce decisions

Scholz

Dorner

Schryen

et al. 2017

European Journal of Operational Research

View full text Add to dashboard Cite

Multi-attribute value theory (MAVT)-based recommender systems have been proposed for dealing with issues of existing recommender systems, such as the cold-start problem and changing preferences. However, as we argue in this paper, existing MAVT-based methods for measuring attribute importance weights do not fit the shopping tasks for which recommender systems are typically used. These methods assume well-trained decision makers who are willing to invest time and cognitive effort, and who are familiar with the attributes describing the available alternatives and the ranges of these attribute levels. Yet, recommender systems are most often used by consumers who are usually not familiar with the available attributes and ranges and who wish to save time and effort. Against this background, we develop a new method, based on a product configuration process, which is tailored to the characteristics of these particular decision makers. We empirically compare our method to SWING, ranking-based conjoint analysis and TRADEOFF in a betweensubjects laboratory experiment with 153 participants. Results indicate that our proposed method performs better than TRADEOFF and CONJOINT and at least as well as SWING in terms of recommendation accuracy, better than SWING and TRADEOFF and at least as well as CONJOINT in terms of cognitive load, and that participants were faster with our method than with any other method. We conclude that our method is a promising option to help support consumers' decision processes in e-commerce shopping tasks.

show abstract

Reservation Price as a Range: An Incentive-Compatible Measurement Approach

Cited by 128 publications

References 73 publications

The Z-Effect: Why Good Is Good, but Better Is Better

The Z-Effect: Why Good Is Good, but Better Is Better

The relationship between young people׳s transit use and their perceptions of equity concepts in transit service provision

A configuration-based recommender system for supporting e-commerce decisions

Contact Info

Product

Resources

About