Understanding Search Behavior: The Roles of Loss Aversion and Mental Costs
In our newly designed sequential search experiments, we test how sunk cost affect decision making and distinguish it from the effect of people's marginal mental search cost, which increases over the number of searches. We find evidence that sunk cost affect search decision in a quadratic way: reservation value first decreases as sunk cost goes up and then increases after certain threshold, which can be a reason for the phenomenon of under-search and recall found in previous studies. This is consistent with the loss aversion theory.
龚冰琳：华东师范大学经济管理学部研究员、博导、紫江青年学者。美国马里兰大学经济系博士，曾任复旦大学、上海交通大学教师、世界银行和亚洲发展银行顾问。研究领域包括行为与实验经济学、产业组织、应用微观经济学、行为金融。通过理论建模、实验和实证方法研究社会环境、信息和规则对决策的影响。论文发表在管理类国际顶级期刊Management Science和经济学国际著名期刊Games and Economic Behavior、Experimental Economics、Journal of Economic Behavior and Organization、Journal of Economic Psychology等上。获得第八届全国高校人文社科论文奖二等奖和上海市第十四届哲学社会科学优秀成果奖学科学术奖论文一等奖。入选上海市领军人才、晨光计划、浦江人才计划。主持多项国家级、省部级和国际合作科研项目。主讲上海市留学生英语示范课和多门校级重点课程。担任中国行为与实验经济学论坛学术委员和The Economic Journal等多本著名国际学术期刊审稿人。
Binglin Gong: the researcher of East China Normal University, Ph.D. Supervisor, and Zijiang Young Scholar. She is Ph.D. in Economics, University of Maryland, USA and used to serve as a teacher at Fudan University, Shanghai Jiaotong University, and a consultant of World Bank and Asian Development Bank. Her research fields include behavioral and experimental economics, industrial organization, applied microeconomics, and behavioral finance. Her researches focus on the influence of social environment, information and rules on decision-making through theoretical modeling, experiments and empirical methods. Her papers were published in the top international management journals such as Management Science and the famous international journals such as Games and Economic Behavior, Experimental Economics, Journal of Economic Behavior and Organization, Journal of Economic Psychology, etc. She has won the second prize of the 8th National University Humanities and Social Sciences Paper Award and the first prize of the 14th Shanghai Philosophy and Social Science Outstanding Achievement Award Academic Award Paper and has been selected into Shanghai Leading Talent, Chenguang Project, and Pujiang Talent Project. She has presided over a number of national, provincial and ministerial-level and international cooperative scientific research projects and given lectures on Shanghai international students' English demonstration courses and many key courses at school level. She has served as academic committee member of China Behavioral and Experimental Economics Forum and reviewer of many famous international academic journals such as The Economic Journal.