Looking for Salience: Eye-tracking and Preference Reversals

Andreas Gotfredsen; Edward J. D. Webb; Carsten S. Nielsen; Alexander C. Sebald

Looking for Salience: Eye-tracking and Preference Reversals

Andreas Gotfredsen, Edward J. D. Webb, Carsten S. Nielsen, Alexander C. Sebald

Københavns Universitet

Publikation: Working paper › Forskning

Abstract

The results of an eye-tracking experiment designed to study a violation of revealed preference predicted by salience theory are reported. Specifically, individuals will choose a low quality good with a low price level and a high quality good with a high price level, despite the price of the quality premium being held constant. Subjects exhibited a significant numbers of such preference reversals (16.12% of decisions). However, the eye-tracking hypotheses, designed to test the underlying mechanism of salience theory, are all rejected. The implications for salience theory are discussed. More reversals were observed with hypothetical than incentivized choice (22.11% vs. 10.12% of decisions).

Originalsprog	Engelsk
Udgivelsessted	Copenhagen
Udgiver	Department of Economics. University of Copenhagen
Antal sider	33
Status	Udgivet - 2015
Udgivet eksternt	Ja

Bibliografisk note

Published in: Webb, Edward John Dorrell (2016) : Attention and perception in decisionmaking and interactions, PhD Series, No. 181, ISBN 978-87-93428-04-1, University of Copenhagen, Department of Economics, Copenhagen.

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