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Please use this identifier to cite or link to this item: http://hdl.handle.net/10506/1002

Title: Affective balances in experimental consumer choices
Authors: Mengov, George
Egbert, Henrik
Pulov, S
Georgiev, K
Keywords: Consumer Behavior
Decision making,
Gated Dipole
Satisfaction treadmill
Issue Date: 20-Mar-2013
Abstract: This paper presents an experiment, which builds a bridge over the gap between neuroscience and the analysis of economic behaviour. We apply the mathematical theory of Pavlovian conditioning, known as Recurrent Associative Gated Dipole (READ), to analyse consumer choices in a computer based experiment. Supplier reputations, consumer satisfaction, and customer reactions are operationally defined and, together with prices, related to READ's neural dynamics. We recorded our participants' decisions with their timing, and then mapped those decisions on a sequence of events generated by the READ model. To achieve this, all constants in the differential equations were determined using simulated annealing with data from 129 people. READ predicted correctly 96% of all consumer choices in a calibration sample (n = 1290), and 87% in a test sample (n = 903), thus outperforming logit models. The rank correlations between self-assessed and dipole-generated consumer satisfactions were 89% in the calibration sample and 78% in the test sample, surpassing by a wide margin the best linear regression model.
Description: Mengov, G., H. Egbert, S. Pulov, K. Georgiev. (2008) Affective balances in experimental consumer choices. Neural Networks, 21, (9), 1213-1219. (Impact Factor 2008: 2.656)
URI: http://hdl.handle.net/10506/1002
Appears in Collections:Statistics and Econometrics / Статистика и иконометрия

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