These approximations are at the heart of all the psychological effects described in this book. The process of comparing two objects in an approximate way, combined with numeric valuation, governs effects such as extremeness aversion and asymmetric dominance; the forecasting process is affected by priming; anchoring is all about numeric values; and hyperbolic discounting is affected by forecasting.
The details of how these individual techniques are composed to construct the full decision-making process are too complex to discuss in this book, and in any case are the subject of ongoing research. Interested readers are welcome to read my cognitive economics blog, www.knowingandmaking.com, read the working papers at www.inon.com/research or contact me at [email protected] for more details.
The Psychology of Price Page 21
