Fabio Del Missier Rob Ranyard Davide Pietroni

Fruitful interactions between psychology and behavioral economics: The case of perceived inflation

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Abstract

The paper is structured in three parts. First we offer a contribution to the debate on the relationship between psychology and behavioral economics, by discussing some of the issues raised by Fudenberg (2006). We then analyze the case of perceived inflation, which allows us to show how these issues can be tackled in a specific research context. Finally, we present two experimental studies that stem from our analysis and highlight the relationship between product accessibility from memory and judgments of perceived inflation.

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