Abstract
First prices can be arbitrary; later choices stay coherent with that first number. Demand can look stable without the preference itself being stable.
Ariely, D., Loewenstein, G., & Prelec, D. (2003). Quarterly Journal of Economics, 118(1), 73–106. DOI
Key findings
- Arbitrary first price — An unrelated number can set what a person will pay before the object has been weighed on its merits.
- Coherent after — Later valuations stay consistent with that first anchor, so the curve looks orderly even when the start was arbitrary.
Application
When you watch the same object change price across rooms, treat the first frame as part of the price — not only hours or material. Pair Context of value.