Anchoring Heuristics: Reformation of New Mechanism in Decision Choice of Labour Market

DOI

10.2991/978-2-494069-31-2_341How to use a DOI?

Keywords

Anchoring heuristics; labor economics; elasticity of supply; theatre effects

Abstract

Against this background of an extremely competitive labor market, this study aims to investigate the contribution of anchoring heuristics in modification of framework in labor market supply and demand at the scope of individual decision making. Theoretical insights from anchoring theory, Michael Porter competition theory, work-leisure decision model are synthesised in the context of dynamic labour market. Past literature of anchoring theory and pricing strategy are modified in the context of the labor market to derive new mechanisms and research scope for the selection process of the labour force and employer. In conclusion, anchoring heuristic generates salient impact in decision making of supply of labor force on both intensive and extensive margin, deviating the gap between potential willingness to pay and actual willingness to pay of employer. With the findings, we also modify the mechanism of substitution effect of labor switching from leisure to work. This contributes to the extension of factors influencing elasticity of labor supply. It provides a scope for suppliers and consumers of the labor market to optimise their decision-making process and potential surplus. Therefore, being one of the pioneer studies on the combination of anchoring theory and labor market, the unique value of this research lies in extension of the current framework of labour market supply theory.

Copyright

© 2022 The Author(s)

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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TY  - CONF
AU  - Wu Chen
PY  - 2022
DA  - 2022/12/29
TI  - Anchoring Heuristics: Reformation of New Mechanism in Decision Choice of Labour Market
BT  - Proceedings of the 2022 6th International Seminar on Education, Management and Social Sciences (ISEMSS 2022)
PB  - Atlantis Press
SP  - 2902
EP  - 2911
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-31-2_341
DO  - 10.2991/978-2-494069-31-2_341
ID  - Chen2022
ER  -