Biases in Valuation Vs. Usage of Innovative Product Features

• Main Authors: Meyer, Robert J., Zhao, Shenghui, HAN, Jin K.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: new product adoption; judgment under uncertainty; hyperbolic discounting; optimism bias; projection bias; option theory; Marketing
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1293
• Institution: Singapore Management University

We investigate biases in product valuation and usage decisions that arise when consumers consider a new generation of a product that offers an expanded set of capabilities of uncertain value. Two experiments using a novel computer game show evidence of a valuation-usage disparity: Participants displ...