Medium maximization - Details - CRO | CEIBS Institutional Repository

Medium maximization

Indexed by

SSCI Scopus FT ABDC-A*

Abstract

A　medium-for　example,　points　or　money-is　a　token　people　receive　as　the　immediate　reward　of　their　effort.　It　has　no　value　in　and　of　itself,　but　it　can　be　traded　for　a　desired　outcome.　Experiments　demonstrate　that,　when　people　are　faced　with　options　entailing　different　outcomes,　the　presence　of　a　medium　can　alter　what　option　they　choose.　This　effect　occurs　because　the　medium　presents　an　illusion　of　advantage　to　an　otherwise　not　so　advantageous　option,　an　illusion　of　certainty　to　an　otherwise　uncertain　option,　or　an　illusion　of　linearity　to　an　otherwise　concave　effort-outcome　return　relationship.　This　work　has　implications　for　how　points　influence　consumer　choice　and　how　money　influences　human　behavior.

Address　correspondence　to　Christopher　K.　Hsee.　Many　individuals　have　provided　helpful　comments　on　this　research.　In　particular,　the　authors　thank　Pankaj　Aggarwal,　Danny　Kahneman,　Yuval　Rottenstreich,　Suzanne　Shu,　Jack　Soll,　Dick　Thaler,　Stijn　van　Osselaer,　George　Wu,　and　the　JCR　editor,　associate　editor,　and　reviewers　for　their　helpful　comments　on　drafts　of　this　article.　Funding　for　this　project　is　provided　by　the　University　of　Chicago　Graduate　School　of　Business,　the　National　Science　Foundation,　and　China　Europe　International　Business　School.

Keyword