Illusory price increases after the Euro changeover in Germany: An expectancy-consistent bias.

The aim of the present report is to review research demonstrating the role played by expectations for observed illusory price increases after the euro introduction in Germany. In laboratory experiments when participants are asked to estimate price changes in a restaurant following the euro introduction, the price estimates are found to be biased in the direction of the expectation of rising prices. The research also examines the extent to which a similar judgment bias is evident in other areas and how interventions counteract the bias. A further focus of the research is on the underlying process. In this respect the results show that the bias is based on a selective outcome correction process not previously described. Theoretical implications and practical implications for consumer policy issues are highlighted. [ABSTRACT FROM AUTHOR]

Accession Number: 27941084; Traut-Mattausch, Eva 1; Email Address: traut-mattausch@lmu.de; Greitemeyer, Tobias 1; Email Address: togre@psy.uni-muenchen.de; Frey, Dieter 1; Email Address: frey@psy.uni-muenchen.de; Schulz-Hardt, Stefan 2; Email Address: schulz-hardt@psych.uni-goettingen.de; Affiliations: 1: Social Psychology, Department of Psychology , Ludwig-Maximilians-University Munich , Leopoldstr. 13 80802 Munich Germany; 2: Economic and Social Psychology Unit, Institute of Psychology , Georg-August-University Goettingen , Gosslerstr. 14 Goettingen Germany; Issue Info: Dec2007, Vol. 30 Issue 4, p421; Thesaurus Term: Prices; Thesaurus Term: Discrimination; Thesaurus Term: Euro; Thesaurus Term: Research; Thesaurus Term: Pricing; Subject Term: Expectancy-value theory; Subject Term: Roles (Social aspects); Subject Term: European currency unit -- Economic aspects; Subject: Germany; Author-Supplied Keyword: Expectancy confirmation; Author-Supplied Keyword: Judgmental bias; Author-Supplied Keyword: Price perception; Author-Supplied Keyword: Prior belief effect; Author-Supplied Keyword: Selective outcome correction; Number of Pages: 14p; Illustrations: 1 Diagram, 3 Graphs; Document Type: Article