COHERENT ARBITRARINESS STABLE DEMAND CURVES WITHOUT STABLE.pdfVIP

“COHERENT ARBITRARINESS” : STABLE DEMAND CURVES WITHOUT STABLE PREFERENCES* DAN ARIELY GEORGE LOEWENSTEIN DRAZEN PRELEC In six experiments we show that initial valuations of familiar products and simple hedonic experiences are strongly inuenced by arbitrary “anchors” (some- times derived from a person’s social security number). Because subsequent valua- tions are also coherent with respect to salient differences