The Arbitrary Coherence Effect and Decision Making

Authors

  • Michael D. Mattei Bellarmine University image/svg+xml
  • Stephen J. Hellebusch Hellebusch Research & Consulting

Keywords:

Management, arbitrary coherence, anchoring, new product pricing, purchase intent

Abstract

In Behavioral Economics, “arbitrary coherence” is when an arbitrary, randomly chosen number, influences the amount purchasers are willing to pay for a product. Arbitrary coherence is similar to anchoring which marketers sometimes use to help set optimal prices. This paper examines how the arbitrary coherence effect influences individual decision making.

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Published

2020-04-07

Issue

Vol. 20 No. 1 (2020)

Section

Articles

How to Cite

The Arbitrary Coherence Effect and Decision Making. (2020). American Journal of Management, 20(1). https://articlearchives.co/index.php/AJM/article/view/1489