Study warns of inflated prices due to overlooked choice analysis heterogeneity
Choice analysts are studying how people make decisions by using a mix of real and hypothetical data. They found that the way individuals process information affects their choices. By looking at how people think about different options, researchers can better understand what influences their decisions. Ignoring these differences can lead to overestimating how much people are willing to pay for certain attributes. This study shows that considering how people think about choices is crucial for accurate analysis.