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Shock determination in a two‐stage decision‐making model: The case of COVID‐19 in Colombia

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  • Rafael A. Acevedo
  • Pedro Harmath
  • Jose U. Mora
  • Raquel Puente
  • Elvis Aponte

Abstract

The contributions of this paper are as follows: (a) proposing a two‐stage model to study whether an event has temporary or permanent effects on the probability of choosing a good within a market basket that traditional decision theory cannot explain and (b) studying the effects of COVID‐19 on consumers' decisions in Colombia. Findings suggest that the pandemic has transitory effects on preferences in the short run. If it lasts longer, it could induce to permanent changes. Thus, this model can be used to analyze the temporary or permanent effects of any event, regardless of its nature or geographical region, on consumer's decision.

Suggested Citation

  • Rafael A. Acevedo & Pedro Harmath & Jose U. Mora & Raquel Puente & Elvis Aponte, 2022. "Shock determination in a two‐stage decision‐making model: The case of COVID‐19 in Colombia," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2587-2597, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:2587-2597
    DOI: 10.1002/mde.3547
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    References listed on IDEAS

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