Scarcity improves economic valuations when cognitively salient

dc.authoridIsler, Ozan/0000-0002-4638-2230
dc.authorwosidYilmaz, Onurcan/I-3839-2019
dc.contributor.authorYılmaz, Onurcan
dc.contributor.authorYilmaz, Onurcan
dc.contributor.authorDulleck, Uwe
dc.date.accessioned2023-10-19T15:11:38Z
dc.date.available2023-10-19T15:11:38Z
dc.date.issued2023
dc.department-temp[Isler, Ozan] Univ Queensland, Sch Econ, St Lucia, Australia; [Yilmaz, Onurcan] Kadir Has Univ, Dept Psychol, Istanbul, Turkiye; [Dulleck, Uwe] Queensland Univ Technol, Sch Econ & Finance, Brisbane, Australia; [Dulleck, Uwe] Ctr Behav Econ Soc & Technol, Brisbane, Australia; [Dulleck, Uwe] Australian Natl Univ, Crawford Sch Publ Policy, Canberra, Australia; [Dulleck, Uwe] CESifo, Munich, Germanyen_US
dc.description.abstractIn an influential article, Shah et al. (2015) hypothesized that resource scarcity weakens the effect of irrelevant contextual factors on economic valuations. The hypothesis that scarcity frames value qualifies the applicability of standard theories of rational choice and suggests a revised psychological foundation. In support, Shah et al. showed that differences in the willingness to pay for a commodity depending on where it was purchased (a fancy hotel vs. a run-down store) and in the willingness to travel to receive a fixed discount depend-ing on the size of the purchase (a cheap vs. an expensive computer) were smaller among those with low personal incomes. In a large-scale preregistered experiment (N = 3,442), we tested whether scarcity framed value during the COVID-19 pandemic as well. The sam-ple exhibited the canonical context effects overall. Consistent with the hypothesis, these effects tended to be smaller among those facing higher scarcity of personal income. Ex-tending the original findings, economic valuations of low-income earners improved, partic-ularly when scarcity was on the minds of the participants, as those with high financial and other resource scarcity concerns were less susceptible to the context effects. Our findings indicate that scarcity frames value, especially when it is cognitively salient, and emphasize the importance of considering contextual factors when attempting replications.(c) 2023 The Author(s). Published by Elsevier B.V.This is an open access article under the CC BY-NC-ND license ( http://creativecommons.org/licenses/by-nc-nd/4.0/ )en_US
dc.description.sponsorshipThink Forward Initiative; ING Bank; Deloitte; Dell Technologies; Amazon Web Services; IBM; Center for Economic Policy Research - CEPRen_US
dc.description.sponsorshipThis research has been supported by the Think Forward Initiative (a partnership between ING Bank, Deloitte, Dell Technologies, Amazon Web Services, IBM, and the Center for Economic Policy Research - CEPR). The views and opinions expressed in this paper are solely those of the authors and do not necessarily reflect the official policy or position of the Think Forward Initiative or any of its partners.en_US
dc.identifier.citation0
dc.identifier.doi10.1016/j.jebo.2023.02.019en_US
dc.identifier.endpage371en_US
dc.identifier.issn0167-2681
dc.identifier.issn1879-1751
dc.identifier.scopus2-s2.0-85151246377en_US
dc.identifier.scopusqualityQ1
dc.identifier.startpage362en_US
dc.identifier.urihttps://doi.org/10.1016/j.jebo.2023.02.019
dc.identifier.urihttps://hdl.handle.net/20.500.12469/5143
dc.identifier.volume209en_US
dc.identifier.wosWOS:000971065400001en_US
dc.identifier.wosqualityQ3
dc.khas20231019-WoSen_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.ispartofJournal of Economic Behavior & Organizationen_US
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanıen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectscarcityen_US
dc.subjecteconomic valueen_US
dc.subjectHeuristicsEn_Us
dc.subjectcontext effectsen_US
dc.subjectrational choiceen_US
dc.subjectHeuristics
dc.subjectreplicationen_US
dc.titleScarcity improves economic valuations when cognitively salienten_US
dc.typeArticleen_US
dspace.entity.typePublication
relation.isAuthorOfPublication9871d16b-164e-4f1d-b0e5-8eef999e6b38
relation.isAuthorOfPublication.latestForDiscovery9871d16b-164e-4f1d-b0e5-8eef999e6b38

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