The Reference Effect of Delay Announcements: A Field Experiment
37 Pages Posted: 5 Apr 2017
Date Written: April 3, 2017
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
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