An Investigation of Quick Thinking: Whether Consumers Are Willing to Pay More in Perfect Competition

Liu Chum Yee; Sitong Jin; Qiaoyue Hu; Siqian Wen

doi:10.2991/978-94-6463-246-0_77

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An Investigation of Quick Thinking: Whether Consumers Are Willing to Pay More in Perfect Competition

Authors

Liu Chum Yee¹^{, *}, Sitong Jin², Qiaoyue Hu³, Siqian Wen⁴

¹Yew Wah International Education School of Guangzhou, Guangzhou, 510890, China

²Wuxi United International School, Wuxi, 214104, China

³Guangzhou New Channel-Zengcheng Experimental Middle School, Guangzhou, 510890, China

⁴Wuhan Britain-China School, Wuhan, 430030, China

^*Corresponding author. Email: kity_liu625@163.com

Corresponding Author

Liu Chum Yee

Available Online 26 September 2023.

DOI: 10.2991/978-94-6463-246-0_77 How to use a DOI?
Keywords: quick decision; willingness to pay; perfect competition
Abstract: Some firms have earned an abnormal profit in the long run of perfect competition. However, massive papers have only examined the limitations of the perfect competition models from producer side because they have not considered the perspectives from the behavioral economics. The aim of this paper is to explain the abnormal profit in the relation of limitation of quick thinking and consumer willingness to pay Research design by the consumer side. The data were obtained from the owner design lab survey and field experiment to evaluate the heuristics of consumers. Our analysis showed a strong correlation between consumer choice and heuristic, especially under a low price product which requires more quick thinking. The main outcome of this paper is that Left-digit effect, Representation, Availability bias, anchoring bias are main heuristics during the quick thinking. However, the results depend on the quality and price of the products. In this case, the premise of the study is that the products being discovered has similar quality and price.
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title: Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
Series: Advances in Economics, Business and Management Research
Publication Date: 26 September 2023
ISBN: 10.2991/978-94-6463-246-0_77
ISSN: 2352-5428
DOI: 10.2991/978-94-6463-246-0_77 How to use a DOI?
Open Access: Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

ris enw bib

TY  - CONF
AU  - Liu Chum Yee
AU  - Sitong Jin
AU  - Qiaoyue Hu
AU  - Siqian Wen
PY  - 2023
DA  - 2023/09/26
TI  - An Investigation of Quick Thinking: Whether Consumers Are Willing to Pay More in Perfect Competition
BT  - Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)
PB  - Atlantis Press
SP  - 637
EP  - 649
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-246-0_77
DO  - 10.2991/978-94-6463-246-0_77
ID  - Yee2023
ER  -

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