Proceedings of the 3rd International Conference on Economic Development and Business Culture (ICEDBC 2023)

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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_77How 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.

Copyright
© 2024 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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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
978-94-6463-246-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-246-0_77How to use a DOI?
Copyright
© 2024 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.

Cite this article

risenwbib
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  -