{"title":"Payment for Pain: Differences between Hypothetical and Real Preferences","authors":"J. Trarbach, S. Schosser, B. Vogt","volume":126,"journal":"International Journal of Medical and Health Sciences","pagesStart":371,"pagesEnd":375,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/10007412","abstract":"
Decision-makers tend to prefer the first alternative over subsequent alternatives which is called the primacy effect<\/em>. To reliably measure this effect, we conducted an experiment with real consequences for preference statements. Therefore, we elicit preferences of subjects using a rating scale, i.e. hypothetical preferences, and willingness to pay, i.e. real preferences, for two sequences of pain. Within these sequences, both overall intensity and duration of pain are identical. Hence, a rational decision-maker should be indifferent, whereas the primacy effect predicts a stronger preference for the first sequence. What we see is a primacy effect only for hypothetical preferences. This effect vanishes for real preferences.<\/p>\r\n","references":"[1]\tAtkinson, R., & Shiffrin, R. (1968). Human memory: a proposed system and its control processes. In K. Spence, & J. Spence (Eds.), The psychology of learning and motivation: advances in research and theory (pp. 90\u2013191). New York: Academic Press.\r\n[2]\tCarney, D. R., Banaji, M. R., & Brosnan, S. F. (2012). First Is Best. PLoS ONE, 7, e35088.\r\n[3]\tDeese, J., & Kaufman, R. (1957). Serial effects in recall of unorganized and sequentially organized verbal material. Journal of Experimental Psychology, 54, 180\u2013187.\r\n[4]\tDow, J. (1991). Search Decisions with Limited Memory. The Review of Economic Studies 58, 1\u201314.\r\n[5]\tEbbinghaus, H. (1913). On memory: A contribution to experimental psychology. New York: Teachers College, Collumbia University.\r\n[6]\tGlenberg, A., Bradley, M., Stevenson, J., & Kraus, T. (1980). A Two-Process Account of Long-Term Serial Position Effects. Journal of Experimental Psychology: Human Learning and Memory, 6, 355\u2013369.\r\n[7]\tHastie, R., & Park, B. (1986). The relationship between memory and judgment depends on whether the judgment task is memory-based or on-line. Physiological Reviews, 93, 258\u2013268.\r\n[8]\tHines, E. A., & Brown, G. E. (1936). The cold pressor test for measuring the reactibility of the blood pressure: data concerning 571 normal and hypertensive subjects. The American Heart Journal, 11, 1\u20139.\r\n[9]\tHolt, C. A., & Laury, S. K. (2002). Risk Aversion and Incentive Effects. American Economic Review, 92, 1644\u20131655.\r\n[10]\tLi, C. (2009). Primacy Effect or Recency Effect? a Long-Term Memory Test of Super Bowl Commercials. Journal of Consumer Behaviour, 9, 32-44.\r\n[11]\tLi, Y., & Epley, N. (2009). When the best appears to be saved for last: Serial position effects on choice. Journal of Behavioral Decision Making, 22, 378\u2013389.\r\n[12]\tMantonakis, A., Rodero, P., Lesschaeve, I., & Hastie, R. (2009). Order in Choice: Effects of Serial Position on Preferences. Psychological Science, 20, 1309\u20131312.\r\n[13]\tMullainathan, S. (2002). A Memory-Based Model of Bounded Rationality. The Quarterly Journal of Economics, 117, 735\u2013774.\r\n[14]\tMurphy, J. J., Allen, P. G., Stevens, T. H., & Weatherhead, D. (2005). A meta-analysis of hypothetical bias in stated preference valuation. Environmental and Resource Economics, 30, 313\u2013325.\r\n[15]\tPage, L. & Page, K. (2010). Last Shall Be First: a Field Study of Biases in Sequential Performance Evaluation on the Idol Series. Journal of Economic Behavior and Organization, 73, 186\u2013198.\r\n[16]\tPieters, R. & Bijmolt, T. (1997). Consumer memory for television advertising: a field study of duration, serial position, and competition effects. Journal of Consumer Research, 23, 362-372.\r\n[17]\tVan Boven, L., Kane, J., & McGraw, A. (2008). Temporally asymmetric constraints on mental simulation: Retrospection is more constrained than prospection. In: Markman, K., Klein, W. & Shur, S. (Eds.), The Handbook of Imagination and Mental Simulation, 131-149.\r\n[18]\tYuval, S. (2011). Procedural Analysis of Choice Rules with Applications to Bounded Rationality. American Economic Review, 101, 724\u2013748.\r\n[19]\tSchosser, S.; Trarbach, J. & Vogt, B. (2013). Is the first option worth paying for? An experimental study on the primacy effect. Volkswirtschaftliche Diskussionspapiere 36-13, TU Kaiserslautern.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 126, 2017"}