AMERICAN JOURNAL OF MANAGEMENT
The Arbitrary Coherence Effect and Decision Making
Author(s): Michael D. Mattei, Stephen J. Hellebusch
Citation: Michael D. Mattei, Stephen J. Hellebusch, (2020) "The Arbitrary Coherence Effect and Decision Making," American Journal of Management, Vol. 20, Iss. 1, pp. 100-125
Article Type: Research paper
Publisher: North American Business Press
Abstract:
In Behavioral Economics, “arbitrary coherence” is when an arbitrary, randomly chosen number, influences the amount purchasers are willing to pay for a product. Arbitrary coherence is similar to anchoring which marketers sometimes use to help set optimal prices. This paper examines how the arbitrary coherence effect influences individual decision making.