Your SlideShare is downloading. ×
Virtues and Vices (Read, Loewenstein, and Kalyanarman, 1999)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Virtues and Vices (Read, Loewenstein, and Kalyanarman, 1999)

401
views

Published on

Mixing Virtue & Vice : Combining the Immediacy Effect and the Diversification Heuristic (Read, Loewenstein, and Kalyanarman, 1999) …

Mixing Virtue & Vice : Combining the Immediacy Effect and the Diversification Heuristic (Read, Loewenstein, and Kalyanarman, 1999)

Published in: Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
401
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mixing Virtue & ViceCombining the Immediacy Effectand the Diversification HeuristicRead, Loewenstein, and Kalyanarman, 1999 Paul M. Cohen | MGMT 758
  • 2. Vices, Virtues, and Choice Vices Virtues exchange small exchange small immediate rewards immediate cost for for large delayed costs large delayed rewards (more long-run utility)Simultaneous Choice Sequential Choice 4 1 1 1 1 Simonson (1990)
  • 3. Diversification HeuristicSimultaneous Choice Sequential Choice Take into account preference interactions Not think about preference between goods interactions (complements or substitutes) Apply diversification No need for diversification heuristic heuristic More variety Not so much variety Simonson & Winer (1992)
  • 4. Immediacy EffectSimultaneous Choice Sequential Choice Alternatives are not Alternatives are consumed immediately consumed immediately Favor an initial Favor small immediate immediate reward but rewards over big rewards will wait for later rewards Simonson & Winer (1992)
  • 5. PredictionsSimultaneous Choice Sequential ChoiceDiversification | Immediacy Diversification | Immediacy Favor an initial Not so Favor immediate More immediate reward much rewards over big variety but will wait for variety rewards later rewards Mix of Either Uniform stream of vices and Begin with vice vices or vices virtues virtues Vices and virtues More vices
  • 6. Experiments & Results Lowbrow Highbrow Sequential Simultaneous Choice Types chose each chose three movies on movie the one day, watch oneFilms day you per day with two days watch it in between Results • More highbrow movies were chosen in simultaneous (59%) versus sequential (43%) conditions [p < 0.05] • No difference in proportion of highbrow movies selected for first day in either condition (since they were viewed immediately) • More highbrow movies were chosen in later days for the simultaneous choice group (67%) than on the first day (44%) [p< 0.02] + correlation between day and percentage choosing highbrow movies