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Basic concepts: 2. Preference construction
Anchoring effect
ECON2548 New Directions in Economics • 2019-20 20
Results from Ariely’s experiment
adapted from Poundstone(2010:137)
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$000-19 20-39 40-59 60-79 80-99
Outcomes: Effects of biases [print]
Erta et al (2013)§ Biases in
consumer financial decisions
§ Classified under three groups– Preferences– Beliefs– Decision-
making§ Examples
ECON2548 New Directions in Economics • 2019-20 21
1 2 3
Adapted from Erta et al 2013:7
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