Overestimating Others’ Willingness to Pay
Journal of Consumer ResearchPublished 21 May 2012
Shane Frederick
Citations85
SJR quartileQ1
SJR score8.56
SNIP3.32
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Abstract
This article documents a widespread bias: a tendency to overestimate how much others will pay for goods. The effect may influence pricing and negotiations, which depend on accurate assessments of others' valuations. It is also shown to underlie or interact with several widely researched behavioral phenomena, including egocentric empathy gaps, the endowment effect, and the false-consensus effect.
Keywords
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