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Attribution Bias in Consumer Choice

Author

Listed:
  • Kareem Haggag
  • Devin G Pope
  • Kinsey B Bryant-Lees
  • Maarten W Bos

Abstract

When judging the value of a good, people may be overly influenced by the state in which they previously consumed it. For example, someone who tries out a new restaurant while very hungry may subsequently rate it as high quality, even if the food is mediocre. We produce a simple framework for this form of attribution bias that embeds a standard model of decision making as a special case. We test for attribution bias across two consumer decisions. First, we conduct an experiment in which we randomly manipulate the thirst of participants prior to consuming a new drink. Second, using data from thousands of amusement park visitors, we explore how pleasant weather during their most recent trip affects their stated and actual likelihood of returning. In both of these domains, we find evidence that people misattribute the influence of a temporary state to a stable quality of the consumption good. We provide evidence against several alternative accounts for our findings and discuss the broader implications of attribution bias in economic decision making.

Suggested Citation

  • Kareem Haggag & Devin G Pope & Kinsey B Bryant-Lees & Maarten W Bos, 2019. "Attribution Bias in Consumer Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(5), pages 2136-2183.
    • Handle: RePEc:oup:restud:v:86:y:2019:i:5:p:2136-2183.
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    File URL: http://hdl.handle.net/10.1093/restud/rdy054
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    Citations

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    Cited by:

    1. Adhvaryu, Achyuta & Nyshadham, Anant & Xu, Huayu, 2023. "Hostel takeover: Living conditions, reference dependence, and the well-being of migrant workers," Journal of Public Economics, Elsevier, vol. 226(C).
    2. Francisco Gomes & Michael Haliassos & Tarun Ramadorai, 2021. "Household Finance," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 919-1000, September.
    3. Anthony LokTing Yim, 2023. "How Early Morning Classes Change Academic Trajectories: Evidence from a Natural Experiment," Purdue University Economics Working Papers 1334, Purdue University, Department of Economics.
    4. Nisvan Erkal & Lata Gangadharan & Boon Han Koh, 2022. "By chance or by choice? Biased attribution of others’ outcomes when social preferences matter," Experimental Economics, Springer;Economic Science Association, vol. 25(2), pages 413-443, April.
    5. Gagnon-Bartsch, Tristan & Bushong, Benjamin, 2022. "Learning with misattribution of reference dependence," Journal of Economic Theory, Elsevier, vol. 203(C).
    6. Matt Lowe, 2021. "Types of Contact: A Field Experiment on Collaborative and Adversarial Caste Integration," American Economic Review, American Economic Association, vol. 111(6), pages 1807-1844, June.
    7. Yi Han & Yiming Liu & George Loewenstein, 2023. "Confusing Context with Character: Correspondence Bias in Economic Interactions," Management Science, INFORMS, vol. 69(2), pages 1070-1091, February.
    8. Haggag, Kareem & Patterson, Richard W. & Pope, Nolan G. & Feudo, Aaron, 2021. "Attribution bias in major decisions: Evidence from the United States Military Academy," Journal of Public Economics, Elsevier, vol. 200(C).
    9. Alexander Cappelen & Yiming Liu & Hedda Nielsen & Bertil Tungodden, 2024. "Fairness in a Society of Unequal Opportunities," Rationality and Competition Discussion Paper Series 506, CRC TRR 190 Rationality and Competition.
    10. Jonathan H.W. Tan & Zhao Zichen & Daniel John Zizzo, 2023. "Scientific Inference from Field and Laboratory Economic Experiments: Empirical Evidence," Discussion Papers Series 663, School of Economics, University of Queensland, Australia.

    More about this item

    Keywords

    Misattribution; State-dependent preferences;

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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