Reference-DependentModelofthePrice-QualityHeuristic-.PDFVIP

AYELET GNEEZY, URI GNEEZY, and DOMINIQUE OLIé LAUGA* People often use price as a proxy for quality, resulting in a positive correlation between prices and product liking, known as the “price– quality” (P–Q) heuristic. Using data from three experiments conducted at a winery, this article offers a more complex and complete reference- dependent model of the relationship between price and qua