My Favourite is Not on the Shelf: Effects of the Revealed-Preference Bundle on Consumers' Stated Choice
Posted: 26 Jun 2008
Date Written: March 2008
Based on a conjoint choice experiment relating to canola oil in Japan, this article establishes and tests the impacts of various measures of reference dependence on choice. Results show that although reference dependence may be defined within choice tasks as a type of choice complexity, a broader and more logical definition should be based on respondents' revealed-preference bundle. This broader definition allows for a richer representation and interpretation of behaviour. It is found that references may affect choices through different channels and that many of these effects are non-linear.
Keywords: complexity, random utility, reference dependence, stated choice, variety seeking, C81, D12
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