المؤلفون: POLMAN, EVAN¹ evan.polman@wisc.edu, EFFRON, DANIEL A.² deffron@london.edu, THOMAS, MEREDITH R.³ meredith.thomas@wisc.edu

المصدر: Journal of Consumer Research. Jun2018, Vol. 45 Issue 1, p109-125. 17p. 1 Chart, 1 Graph.

مصطلحات موضوعية: *PURCHASING power, *MONEY illusion, *CHARITABLE uses, trusts, & foundations, *ENDOWMENTS, *VALUE (Economics), *CONSUMER preferences, PSYCHOLOGICAL distance

مستخلص: Nine studies find that people believe their money has greater purchasing power than the same quantity of others' money. Using a variety of products from socks to clocks to chocolates, we found that participants thought the same amount of money could buy more when it belonged to themselves versus others--a pattern that extended to undesirable products. Participants also believed their money-- in the form of donations, taxes, fines, and fees--would help charities and governments more than others' money. We tested six mechanisms based on psychological distance, the endowment effect, wishful thinking, better-than average biases, pain of payment, and beliefs about product preferences. Only a psychological distance mechanism received support. Specifically, we found that the perceived purchasing power of other people's money decreased logarithmically as others' psychological distance from the self increased, consistent with psychological distance's subadditive property. Further supporting a psychological distance mechanism, we found that framing one's own money as distant (vs. near) reduced the self-other difference in perceived purchasing power. Our results suggest that beliefs about the value of money depend on who owns it, and we discuss implications for marketing, management, psychology, and economics. [ABSTRACT FROM AUTHOR]

: Copyright of Journal of Consumer Research is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

المؤلفون: WERTENBROCH, KLAUS¹ klaus.wertenbroch@insead.edu, SOMAN, DILIP² dilip.soman@rotman.utoronto.ca, CHATTOPADHYAY, AMITAVA³ amitava.chattopadhyay@insead.edu

المصدر: Journal of Consumer Research. Jun2007, Vol. 34 Issue 1, p1-10. 10p. 2 Charts, 1 Graph.

مصطلحات موضوعية: *MONEY illusion, *VALUE (Economics), *PURCHASING power, *CONSUMER behavior, *VALUATION, *MONEY, *DEVALUATION of currency, *CURRENCY question, *CONSUMER goods, *ANCHORING effect

مستخلص: Money illusion research shows that the nominal (face) value of money affects consumer perceptions of its real value. Recent mixed findings on consumer valuations in different currencies suggest that the underlying anchoring and adjustment processes are complex. We develop a framework to identify boundary conditions that specify the direction of anchoring effects on valuations in different currencies. Consumers anchor on the numerosity of the nominal difference between prices and salient referents (e.g., budgets) when evaluating transactions. Support for our framework comes from a series of experiments that evoke different reference standards. We discuss implications and opportunities for future research. [ABSTRACT FROM AUTHOR]

: Copyright of Journal of Consumer Research is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

المؤلفون: Fehr, Ernst¹, Tyran, Jean-Robert²

المصدر: American Economic Review. Dec2001, Vol. 91 Issue 5, p1239. 24p. 3 Graphs.

مصطلحات موضوعية: *MONEY illusion, *PRICES, *VALUE (Economics), *ECONOMICS, *PURCHASING power, *MACROECONOMICS, *COST, *EXCHANGE, NOMINAL measurement

مستخلص: This paper shows that a small amount of individual-level money illusion may cause considerable aggregate nominal inertia after a negative nominal shock. In addition, our results indicate that negative and positive nominal shocks have asymmetric effects because of money illusion. While nominal inertia is quite substantial and long lasting after a negative shock, it is rather small after a positive shock. (JEL C92, E32, E52) [ABSTRACT FROM AUTHOR]

: Copyright of American Economic Review is the property of American Economic Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

المؤلفون: Shafir, Eldar¹, Diamond, Peter², Tversky, Amos³

المصدر: Quarterly Journal of Economics. May97, Vol. 112 Issue 2, p341-374. 34p. 1 Diagram, 1 Chart.

مصطلحات موضوعية: *MONEY illusion, *PRICE inflation, *PRICES, *PURCHASING power, *VALUE (Economics), *ECONOMICS, *ECONOMIC surveys, MONEY & psychology, PSYCHOLOGY

مستخلص: The term "money illusion" refers to a tendency to think in terms of nominal rather than real monetary values. Money illusion has significant implications for economic theory, yet it implies a lack of rationality that is alien to economists. This paper reviews survey questions regarding people's reactions to variations in inflation and prices, designed to shed light on the psychology that underlies money illusion. We propose that people often think about economic transactions in both nominal and real terms, and that money illusion arises from an interaction between these representations, which results in a bias toward a nominal evaluation. [ABSTRACT FROM AUTHOR]

: Copyright of Quarterly Journal of Economics is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

المؤلفون: Craig, George D.¹

المصدر: American Economic Review. Mar1974, Vol. 64 Issue 1, p195-199. 5p. 2 Charts, 1 Graph.

مصطلحات موضوعية: *MONEY illusion, *PROPENSITY to consume, *PURCHASING power, *CONSUMER behavior, *VALUE (Economics), *MATHEMATICAL models of consumption

مستخلص: This article presents an empirical evidence on the presence of money illusion through the use of aggregate consumption function. Beyond the implication of the presence of money illusion, there is a strong indication to include a separate price variable, when a wealth variable is used anyway. The latter statement is especially true if one is interested in maximizing predictive accuracy, which is an indicator of the correctness of specification. The conclusion derived from the study is with reference to "actual" consumption, which excludes consumer expenditures on durables but includes depreciation and imputed rent for consumer durables, as well as consumer expenditures on non-durables and services.

المؤلفون: Gamble, Amelie

المصدر: Journal of Consumer Policy; Dec2007, Vol. 30 Issue 4, p323-336, 14p, 1 Diagram, 1 Chart

مصطلحات موضوعية: EURO, EUROPEAN currency unit, MONEY, MONEY illusion, ECONOMIC conversion of defense industries, CONJOINT analysis, LONGITUDINAL method, VALUE (Economics), CURRENCY convertibility

مصطلحات جغرافية: EUROPEAN Union countries

مستخلص: The changeover to the euro elicited an upsurge of research on the effects of the new currency on consumers’ conversion strategies, price estimates, price evaluations, choices, and purchases. This research includes longitudinal surveys, interviews, and controlled experiments, both natural and in the laboratory. The present article starts with an overview of this research after which it more specifically focuses on research showing an influence of the nominal value, as expressed in different currencies, on price evaluations and consumer choice. For most countries, the transition to the euro led to a lower nominal value currency. A bias known as the “euro illusion” has been documented such that the subjective value of money is influenced in the direction of the nominal value (i.e., in most countries prices and salaries seem smaller when expressed in euros than in the old domestic currency). Although the term was coined in connection with the euro changeover, the nominal representation of a currency has been shown to influence the subjective value of money in unfamiliar currencies other than the euro. Thus, tourists travelling abroad may frequently be subject to such an illusion. Different mechanisms have been proposed to account for the euro illusion. One is the numerosity heuristic and another the anchoring-and-adjustment heuristic in conjunction with biased conversion strategies. The size of the euro illusion is influenced by trade-offs between accuracy and effort. Consistent with this hypothesis, task importance, time constraints, familiarity with the conversion strategy, complexity of the conversion strategy, mood, and attitude towards the country or the currency all influence the size of the euro illusion. [ABSTRACT FROM AUTHOR]

: Copyright of Journal of Consumer Policy is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

المؤلفون: Kelly Shue, Richard R. Townsend

المصدر: Journal of Financial Economics. 123:1-21

مصطلحات موضوعية: Economics and Econometrics, 050208 finance, Executive compensation, Strategy and Management, media_common.quotation_subject, 05 social sciences, Equity (finance), Monetary economics, Boom, Valuation of options, Accounting, 0502 economics and business, Value (economics), Money illusion, Economics, Statistical dispersion, 050207 economics, Sophistication, Finance, media_common

الوصف: The dramatic rise in CEO compensation during the 1990s and early 2000s is a longstanding puzzle. In this paper, we show that much of the rise can be explained by a tendency of firms to grant the same number of options each year. Number-rigidity implies that the grant-date value of option awards will grow with firm equity returns, which were very high on average during the tech boom. Further, other forms of CEO compensation did not adjust to offset the dramatic growth in the value of option pay. Number-rigidity in options can also explain the increased dispersion in pay, the difference in growth between the US and other countries, and the increased correlation between pay and firm-specific equity returns. We present evidence that number-rigidity arose from a lack of sophistication about option valuation that is akin to money illusion. We show that regulatory changes requiring transparent expensing of the grant-date value of options led to a decline in number-rigidity and helps explain why executive pay increased less with equity returns during the housing boom in the mid-2000s.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::a1de0d3fbf97de089462816a74970e37Test
https://doi.org/10.1016/j.jfineco.2016.08.006Test

المؤلفون: Benassy, Jean-Pascal

المصدر: Economic Journal; May95, Vol. 105 Issue 430, p635-643, 9p

مصطلحات موضوعية: LABOR unions, WAGES, MONEY illusion, VALUE (Economics), MONETARY policy, MACROECONOMICS

مستخلص: Many rational wage setting schemes, such as the trade unions paradigm, are usually thought to lead to pure real rigidities. In this article we construct a model where a rational trade union without any kind of money illusion sets wage schedules in an economy subject to real and monetary shocks. We make the realistic assumption that wages can be conditioned on prices. It is found that, although the trade union has the option of fully insulating workers from nominal disturbances, it will rationally choose not to do so, and therefore nominal rigidities will be present in the economy. [ABSTRACT FROM AUTHOR]

: Copyright of Economic Journal is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

المؤلفون: Riedel, James

المصدر: Economic Journal; Jun89, Vol. 99 Issue 396, p467-470, 4p, 1 Diagram

مصطلحات موضوعية: INTERNATIONAL trade, EXPORTS, VALUE (Economics), MONEY illusion, PURCHASING power, MULTICOLLINEARITY

مصطلحات جغرافية: HONG Kong (China), CHINA

مستخلص: This article focuses on the demand for the manufactured exports of Hong Kong, China. The price of Hong Kong exports is found to depart from the world price only in the, short-run, with a mean lag of adjustment of about 18 months. Indeed price rigidity is a far more plausible explanation of non-zero price homogeneity in the short-run than infinite money illusion. Money illusion would be a more plausible explanation if non-zero price homogeneity were found in the long run. The hypothesis being tested is that the Hong Kong price follows the world price and that the quantity exported has no significant effect on price. That hypothesis cannot be rejected on the basis of the results, and this stands whether or not there is multicollinearity.

المؤلفون: Maxwell Twum-Asante, Vivian Dzokoto, Annabella Opare-Henaku, Edwin Clifford Mensah

المصدر: Journal of Consumer Policy. 33:339-353

مصطلحات موضوعية: Microeconomics, Economics and Econometrics, Currency, Lived experience, Value (economics), Commercial law, Devaluation, Economics, Revaluation, Money illusion, Business, Management and Accounting (miscellaneous), Hyperinflation, Monetary economics

الوصف: The current study is a qualitative exploration of the presence of the money illusion in the lived experiences of Ghanaian adult consumers after a currency redenomination. The results indicated that a switch from the old currency to the new currency had implications for self-worth determination, trivialization of price increases, changes in spending behaviour, and changes in the extent of benevolence. All these changes were related to the tendency to make judgments based on the nominal value of an amount of money, rather than its real value; the judgment bias is known as the money illusion.

الوصول الحر: https://explore.openaire.eu/search/publication?articleId=doi_________::06d76e9fe2a691fd595d07b397ed4fccTest
https://doi.org/10.1007/s10603-010-9144-3Test