This study examines the interest in different pension payout schemes when full annuitization is the default. We focus on three possible pension payout schemes: a flat-rate annuity, a high/low annuity-based profile, and a partial lump sum at retirement with a lower flat-rate annuity after that. We make use of a vignette study and find substantial interest in each of the three payout schemes. Interest in the lump sum scheme increases when a higher percentage can be taken out as a lump sum or when interest rates or replacement rates are lower. Interest in a high/low annuity-based profile increases when the high annuity is valid for a shorter period.

One prominent model in the realm of memory-based judgments and decisions is the recognition heuristic. Under certain preconditions, it presumes that choices are based on recognition in a one-cue non-compensatory manner and that other information is ignored. This claim has been studied widely—and received, at best, mixed support—in probabilistic inferences. By contrast, only a small number of recent investigations have taken the RH to the realm of preferential decisions (i.e. consumer choice). So far, the conclusion has been that the RH cannot satisfactorily account for aggregate data patterns, but no fully specified alternative model has been demonstrated to provide a better account. Herein, the data from a recent consumer-choice study (Thoma & Williams, 2013) are re-analyzed with the outcome-based maximum-likelihood strategy classification method, thus testing several competing models on individual data. Results revealed that an alternative compensatory model (an equal weights strategy) accounted best for a larger number of datasets than the RH. Thereby, the findings further specify prior results and answer the call for comparative model testing on individual data that has been voiced repeatedly.

This study measures the perceived costs, perceived benefits, choice outcome satisfaction, and choice process satisfaction from consumers making hypothetical choices amongst prescription drug plans. I juxtapose the number of options the consumer is choosing between and his/her perceived variety of the choice set to understand which contributes more to explaining these outcomes. I find that once perceived variety is included in the model, the number of options (i) has no effect on perceived benefits and choice outcome satisfaction, (ii) increases perceived costs, and (iii) decreases choice process satisfaction. Furthermore, the concave relationship that has been shown to occur when the number of options increases is a function of the subjective perception of variety. Overall, these results contribute to our understanding of how assortment structure and the number of options affect choice outcome and process satisfaction. Additionally, this study provides some evidence that can inform U.S. national heath insurance policy and the current debate on choice in health care in the United States and other countries.

Previous research in multiple judgment domains has found that nonlinear functionsare typically processed less accurately than linear ones. This empiricalregularity has potential implications for consumer choice, given that nonlinearfunctions (e.g., diminishing returns) are commonplace. In two experimentalstudies we measured precision and bias in consumers’ ability to identifysurpluses when returns to product attributes were nonlinear. We hypothesizedthat nonlinear functions would reduce precision and induce bias towardlinearization of nonlinear relationships. Neither hypothesis was supported formonotonic nonlinearities. However, precision was greatly reduced for productswith nonmonotonic attributes. Moreover, assessments of surplus weresystematically and strongly biased, regardless of the shape of returns anddespite feedback and incentives. The findings imply that consumers use aflexible but coarse mechanism to compare attributes against prices, withimplications for the prevalence of costly mistakes.

Standard preference models in consumer research assume that people weigh and add all attributes of the available options to derive a decision, while there is growing evidence for the use of simplifying heuristics. Recently, a greedoid algorithm has been developed (Yee, Dahan, Hauser & Orlin, 2007; Kohli & Jedidi, 2007) to model lexicographic heuristics from preference data. We compare predictive accuracies of the greedoid approach and standard conjoint analysis in an online study with a rating and a ranking task. The lexicographic model derived from the greedoid algorithm was better at predicting ranking compared to rating data, but overall, it achieved lower predictive accuracy for hold-out data than the compensatory model estimated by conjoint analysis. However, a considerable minority of participants was better predicted by lexicographic strategies. We conclude that the new algorithm will not replace standard tools for analyzing preferences, but can boost the study of situational and individual differences in preferential choice processes.

What is the role of recognition in consumer choice? The recognition heuristic (RH) proposes that in situations where recognition is correlated with a decision criterion, recognized objects will be chosen more often than unrecognized ones, regardless of any other relevant information available about the recognized object. Past research has investigated this non-compensatory decision heuristic in inference. Here we report two experiments on preference using a naturalistic consumer choice task. Results revealed that, although recognition was a powerful driver of preferences, it was used in a compensatory rather than a non-compensatory way. Specifically, additional information learned about recognized brand objects significantly affected choices. It appears that recognition is processed in a compensatory manner and combined with other attributes in preferential choice.

Previous research on the role of recognition in decision-making in inferentialchoice has focussed on the Recognition Heuristic (RH), which proposes that insituations where recognition is predictive of a decision criterion, recognizedobjects will be chosen over unrecognized ones, regardless of any other availablerelevant information. In the current study we examine the role of recognition inpreferential choice, in which subjects had to choose one of a pair of consumerobjects that were presented with quality ratings (positive, neutral, andnegative). The results showed that subjects’ choices were largely basedon recognition, as the famous brand was preferred even when additional starratings rendered it as less attractive. However, the additional information didaffect the proportion of chosen famous items, in particular in the cases whenstar ratings for the recognised brand were negative. This condition alsoresulted in longer response times compared to neutral and positive conditions.Thus, the current data do not point to a simple compensatory mechanism inpreferential choice: although choice is affected by additional information, itseems that recognition is employed as an initial important first step in thedecision-making process.

The focus of international humanitarian law scholarship, and that of international law more broadly, has traditionally taken a state-centric focus, for good reason. Moreover, the age-old question of “does international law work” is explored thorough the rubric of state and, more recently, corporate-level compliance. Such endeavors, however, overlook a set of participants in international law: The individual. Diffusion of international law norms through the general populace is a valuable goal in itself, but by leveraging their decision-making as consumers, it may also play an important role in inducing greater compliance by companies and states. This is acknowledged by the proliferation of consumer boycott campaigns, country-of-origin labelling requirements, and increased demands for corporate transparency. However, little is known about whether international law influences consumer choices. Using international humanitarian law as an illustrative example, this article contends that international legal scholarship should be expanded to include the consumer within its ambit, and that one promising pathway to do so is through greater uptake of the methodological approaches and insights offered by behavioral economics.

The valorization of plant genetic resources and their direct use in local markets can make a significant contribution to the preservation of agrobiodiversity, while also contributing to the sustainability of rural communities. Indeed, plant genetic resources are a precious source of genes, and they represent an important crop heritage for the quality and sensory characteristics that are required by both farmers and consumers. However, an efficient strategy of agrobiodiversity conservation is strictly connected to product marketability and to consumer preferences. In the present study, choice experiments that involved 920 consumers were carried out to determine their willingness to pay for ancient local tomato varieties (landraces) rather than commercial varieties based on their preferences, and to determine how much they valued these products. The results obtained indicate that consumers are willing to pay premium prices for ancient local tomato varieties (an additional €0.90 kg−1), thus demonstrating their increasing attention to sustainable food and the willingness to contribute to agrobiodiversity conservation and enhancement. These results provide the basis for planning strategies and programs to support the cultivation of these landraces and the development of regional and national markets to acknowledge their characteristics, which will considerably increase the effectiveness and efficiency of conservation strategies.

Trivial or irrelevant attributes are defined as attributes that do not create a meaningful difference in a brand's performance. The objective of this paper is to determine if and how trivial attributes affect consumers in their choice of variety/brands of food products including frozen green beans, orange juice, canola oil, and frosted strawberry toaster pastries. Sixty subjects participated in the experiment. Subjects understood that trivial attributes are less important than substantive attributes. Substantive (important) quality attributes and economic variables affecting choice were all perceived equal across brands by the subjects in the experiment. Two critical driving forces in determining the presence and direction of the effect of a trivial attribute on the consumer choice are the size of the choice set and the type of trivial attribute, i.e., product versus promotional attribute.

Current interest in early warning can be understood as a natural response to the regularity with which health service planners have been overwhelmed by new technology. Planning the rational introduction of a new technology should be facilitated by advance warning of its imminent arrival on the market. Current approaches to early warning tend to rely on the insights and expectations of scientific and clinical experts in the field in question. In this paper it is argued that such an approach fails to recognize important changes that have occurred both in the innovation process itself, and in theoretical understanding of it. With the more complex roles that governments now play, and with the increasingly articulate demands of consumers, the innovation process has become more complex. At the same time, it is now clear that the innovation process embodies a multitude of choices. Approaches to early warning must be compatible with these new perspectives.

This study reports results from a randomized controlled intervention trial, focusing on: (1) the identification of successful consumer strategies for increasing fruit and vegetable intakes to the recommended levels of more than five (80 g) portions per day and (2) impact on overall diet and nutrient intakes. Adult men and women (n 170) fulfilling the main recruitment criterion of eating less than five fruit and vegetable portions per day but contemplating increasing intakes were recruited. Complete valid dietary data was provided by 101 intervention (fifty-nine estimated fruit and vegetable intakes, and forty-two simultaneous weighed total dietary and estimated fruit and vegetable intakes) and twenty-four control subjects (weighed total dietary intakes). Intervention advice included the specific association of high fruit and vegetable intake with reduced risk of disease, practicalities, and portion definition with a target intake of greater than five 80 g fruit and vegetable portions per day for 8 weeks. There were significant effects (P < 0·001) on weighed intakes of fruit and vegetables in the intervention group, rising from 324 (se 25) to 557 (se 31) g/d and reflected by validated portion measures at 8 weeks intervention. Successful strategies chosen by ‘achievers’ of the target intake (65% of subjects) were conventional (fruit as a snack, vegetables with main meals etc.) and favoured fruit. There were significant increases in percentage energy from carbohydrate (from sugars not starch), vitamin C, carotenes and NSP and there was a significant decrease in percentage energy from fat for subjects who had high fat intakes (> 35% energy) at baseline. Follow-up self-reported measures at 6 and 12 months indicated mean intakes of 4·5 and 4·6 defined portions/d respectively, suggesting some sustainable effect. In conclusion, the intervention led to significant increases in fruit and vegetable intakes largely via conventional eating habits, with some desirable effects on macro- and micronutrient intakes.