The Reference Effect of Delay Announcements: A Field Experiment

37 Pages Posted: 5 Apr 2017

See all articles by Qiuping Yu

Qiuping Yu

Scheller College of Business, Georgia Institute of Technology

Gad Allon

University of Pennsylvania - The Wharton School

Achal Bassamboo

Northwestern University - Department of Managerial Economics and Decision Sciences (MEDS)

Date Written: April 3, 2017

Abstract

We explore whether customers are loss averse in time and how the amount of delay information available may impact such reference-dependent behavior by conducting a field experiment at a call center. Our results show that customers exhibit loss averse regardless of the availability or accuracy of the delay information. While delay announcements may not alter the fact that customers are loss averse, they do seem to impact the reference points customers use when the announcements are accurate. However, when those announcements are not accurate, customers may completely disregard them.

Keywords: Loss Aversion in Time, Delay Announcements, Field Experiment, Structural Estimation

Suggested Citation

Yu, Qiuping and Allon, Gad and Bassamboo, Achal, The Reference Effect of Delay Announcements: A Field Experiment (April 3, 2017). Kelley School of Business Research Paper No. 17-26. Available at SSRN: https://ssrn.com/abstract=2945535 or http://dx.doi.org/10.2139/ssrn.2945535

Qiuping Yu (Contact Author)

Scheller College of Business, Georgia Institute of Technology ( email )

800 West Peachtree NW
Atlanta, GA 30308
United States

HOME PAGE: http://https://qiupingyu.com/

Gad Allon

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Achal Bassamboo

Northwestern University - Department of Managerial Economics and Decision Sciences (MEDS) ( email )

2001 Sheridan Road
Evanston, IL 60208
United States

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