In both situations you have won the same amount, but Thaler's research shows that you are happier in situation A. This effect can again be explained by the prospect theory. The graph of the prospect theory shows that the subjective value of €50 and €25 added together is higher than the subjective value of €75. In a losing situation:
A: You are told by the tax authorities that you have made a mistake
in your tax return, you have to pay back €50. Then you get
you receive another letter stating that you also have to pay back €25 for the previous year.
B: You receive one letter from the tax authorities stating that you have to pay €75.
In this situation we prefer option B, because the subjective value of an integrated amount is less negative than two amounts to be paid.
Practical implication
The lesson to be learned from the first example is that we need to emphasize the costs you can save by choosing your product: “If you choose product X, you will save €… on Y and €… on Z.” If the focus is on incurring costs (example 2), you need to integrate the costs: “For product X, you only pay €15 per month for the device and subscription.”
4. Disjunction effect
Research by Shafir and Tversky shows that consumers have a strong preference for certainty. We often only dare to make a choice when we are certain of something, even if the outcome is completely irrelevant to the decision.
This was demonstrated in a study in which students were asked whether they would go on a vacation to Hawaii if they had passed their exams. The results were that students indicated that they would go on a trip if they had passed their exams, but also if they had not passed. The students who did not yet know whether they had passed indicated that they would not go. Of course, this is strange if your behavior is the same regardless of the outcome of your exam. So people attach value to korean phone number whatsapp information that is not important for making the decision.
The influence of information is also reflected in the stock market. After the outcome of the American presidential election, a lot often happens on the stock market, even though many people strongly doubt that the election outcome has any influence on the stock market price.
2 scenarios
Bastardi and Shafir demonstrated the disjunction effect in a study in which people were presented with one of the two scenarios below:
You recently decided to buy a new CD player and this week there is a 50% off sale on the product you want. The offer is valid today only.
However, your amplifier is broken and the warranty has expired, the repair costs are €90. Are you buying the CD player?
Your amplifier is broken, but the repairman must first check the warranty date. You will not know until tomorrow whether the warranty is still valid, or whether you have to pay €90. Are you buying the CD player today?
Are you not buying the CD player?
Are you waiting until tomorrow.