Heuristic Thinking and Limited Attention in the Car Market

2012 ◽  
Vol 102 (5) ◽  
pp. 2206-2236 ◽  
Author(s):  
Nicola Lacetera ◽  
Devin G Pope ◽  
Justin R Sydnor
Keyword(s):  
Information Processing ◽  
Limited Attention ◽  
Product Markets ◽  
Car Market ◽  
Heuristic Information ◽  
Observed Information ◽  
Used Car ◽  
Heuristic Information Processing

Can heuristic information processing affect important product markets? Analyzing over 22 million wholesale used-car transactions, we find evidence of left-digit bias in the processing of odometer values, whereby individuals focus on the number's leftmost digits. The bias leads to discontinuous drops in sale prices at 10,000-mile odometer thresholds, along with smaller drops at 1,000-mile thresholds. These findings reveal that information-processing heuristics matter even in markets with large stakes and easily observed information. We model left-digit bias in an inattention framework and structurally estimate the inattention parameter. Empirical patterns suggest the results are driven by final customers rather than professional agents. (JEL D12, D44, D83, L81)

scholarly journals INFORMATION PROCESSING – HEURISTIC VS SYSTEMATIC AND SUSCEPTIBILITY OF SHARING COVID 19-RELATED FAKE NEWS ON SOCIAL MEDIA

2020 ◽  
Vol 12 ◽  
pp. 42-56
Author(s):  
Irum Alvi ◽  
Niraja Saraswat
Keyword(s):  
Social Media ◽  
Information Processing ◽  
Media Studies ◽  
Research Model ◽  
Fake News ◽  
Heuristic Information ◽  
The Media ◽  
Heuristic Information Processing ◽  
Systematic Information Processing ◽  
Processing Heuristic

Social media has turned into a fertile ground for COVID-19 fake news. The present study aims to provide a hypothetical and empirical background to elucidate the psychological and behavioral aspects of information processing and susceptibility of sharing the fake news, with especial reference to COVID-19 news on social media. The study explores the relation between the select variables and heuristic and systematic information processing. Grounded on prior studies, this paper presents a research model to address susceptibility of sharing the fake news on social media, and identifies characteristics that may be more susceptible than others for sharing fake news on social media including Sharing Motivation (SM), Social Media Fatigue (SMF), Feel Good Factor (FGF), Fear of Missing out (FoMO), News Characteristics (NC) and five Big Personality Traits. The data collected from 244 respondents was analyzed with the help of IBM SPSS 23, using descriptive and statistical test, including means, standard deviations, and correlation analysis conducted. Correlation exploration was utilized to study the association between the select variables and systematic and heuristic information processing and susceptibility of sharing the fake news on social media. The findings show several factors contribute to information processing in both modes. The study confirms that heuristic processing is significantly associated with susceptibility of sharing fake news. The research adds to the media studies, behavioral and psychological disciplines, as it examines the relationships between the select variables and the systematic and heuristic information processing and COVID-19 fake news on social media. The present investigation makes an innovative and original contribution to media studies by exploring the relationship between select variables and susceptibility for sharing fake news on social media. The study presents a research model to identify the influence of select variables on information processing and the susceptibility to falling prey to fake news on social media and contributes to the domain to media studies.

A model of the used car market with lemons and leasing

2010 ◽  
Vol 42 (28) ◽  
pp. 3619-3627 ◽  
Author(s):  
Arif Sultan
Keyword(s):  
Car Market ◽  
Used Car

Pakwheels.com—The Next Challenge!

2017 ◽  
Vol 14 (2) ◽  
pp. 137-159
Author(s):  
Farrah Arif ◽  
Sarah Suneel Sarfraz
Keyword(s):  
Business Model ◽  
Turning Point ◽  
Model Identification ◽  
Scaling Up ◽  
Car Market ◽  
Retail Channel ◽  
Start Up ◽  
Potential Sources ◽  
Used Car ◽  
Trade Channel

This case features the challenges of a start-up website in the used car market in 2015 as its founding partners assess potential sources of profitable growth and ways to maintain their competitive advantage. Founded in Pakistan, PakWheels.com was a vertically classified automotive portal. The case goes on to illustrate how PakWheels.com successfully revolutionized the used-car trade channel by bridging the gap between the traditional retail channel of car dealers and buyers. Key discussion points of the case revolve around the turning point of PakWheels business, namely retention of users while sustaining the current business model, identification of key strategies for scaling up and monetization, and response to competitive threats to safeguard its market position. Through assessing these options and discussing this case, students will learn about strategic problems faced by online portals as well as how these unique businesses create value for end users.

scholarly journals Mahindra First Choice

2021 ◽  
pp. 354-362
Author(s):  
Ben Jackson ◽  
Genevieve Joy
Keyword(s):  
Third Party ◽  
Repair System ◽  
Market Failures ◽  
System A ◽  
Car Market ◽  
System P ◽  
First Choice ◽  
Used Car ◽  
The Creation ◽  
Trust Information

Mahindra Firstchoice illustrates the process of ecosystem orchestration in the context of the second-hand car market in India. It describes how Mahindra Firstchoice mapped the ecosystem in relation to six key parties—consumers who were buyers, consumers who were sellers, car manufacturers, independent used-car dealers, independent car service workshops, and banks. It then identified the bottlenecks and ‘pain points’ that afflicted the six parties. The used-car market did not function properly because of lack of trust, information, and transparency and Mahindra Firstchoice worked with the parties to identify solutions to the market failures. These involved, amongst other things, the creation of third-party car inspection services, the establishment of a multi-brand car-dealer franchise, a warranty system, a bluebook of second-hand prices and transactions, and a car diagnosis and repair system.

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