Price path dependency: an analysis on the willingness to buy.
This thesis demonstrates that the willingness to buy an asset substantially is influenced by at least a straight price path in both the gain and the up-down price path in the loss domain. Furthermore, when a price path is up-down and in the loss domain then there is a negative effect on the willingness to buy. In the loss domain the willingness to buy is highest when the graphs first go up and then goes down and the difference between the two paths is significant meaning that there is a difference in willingness to buy and thus there is an effect of price paths on the willingness to buy but this effect is only visible in the loss domain. In the experiments this thesis conducts, the willingness to buy when no price path is shown with the willingness to buy when a price path is shown is compared. This thesis results extends the literature about price paths the and combines multiple methods to answer the research question.
Faculteit der Managementwetenschappen