{"pk":27821,"title":"Dynamic and distrobutional properties of prices","subtitle":null,"abstract":"Most models of pricing embody a static, deterministic theoryof value where the monetary amount people assign to an itemis computed as a fixed function of its attributes. Preference re-versals — where prices assigned to gambles conflict with pref-erence orders elicited through binary choices – indicate thatthe response processes going into value assessments are impor-tant. In this paper, we additionally show that price responsesare sensitive to time pressure, suggesting a dynamic underlyingcognitive process. We also show that the elicited price distribu-tions can possess strong positive or negative skew, indicatingthat diverging information is used to generate buying versusselling and certainty equivalent prices. We develop a computa-tional cognitive model that predicts these continuous distribu-tions of price responses and how they change over time, show-ing that it can account for the major dynamic and distributionalproperties of prices and decisions.","language":"eng","license":{"name":"","short_name":"","text":null,"url":""},"keywords":[{"word":"pricing"},{"word":"Cognitive model"},{"word":"Buying"},{"word":"Selling"},{"word":"Certainty equivalent"}],"section":"Publication-based-Talks","is_remote":true,"remote_url":"https://escholarship.org/uc/item/4zf0c9sx","frozenauthors":[{"first_name":"Peter","middle_name":"D","last_name":"Kvam","name_suffix":"","institution":"Indiana University, Bloomington","department":""},{"first_name":"Jerome","middle_name":"R","last_name":"Busemeyer","name_suffix":"","institution":"Indiana University, Bloomington","department":""}],"date_submitted":null,"date_accepted":null,"date_published":"2018-01-01T18:00:00Z","render_galley":null,"galleys":[{"label":"PDF","type":"pdf","path":"https://journalpub.escholarship.org/cognitivesciencesociety/article/27821/galley/17460/download/"}]}