The Effects of Cumulative Consumption Feedback On Demand For Money As A Commodity

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Behavioral economic theory describes a relation between response requirement and magnitude of reinforcement, and combines these variables into one independent variable (unit price) affecting operant behavior. This study investigated the relative effects of cumulative feedback on consumption for money as a commodity. Subjects were exposed to ranges of unit prices with or without a cumulative feedback bar on the computer screen indicating monetary earnings. For all participants in this study, consumption of money was a decreasing function of unit prices and the results from the present study are consistent with the behavioral economic prediction that increasing the unit price of … continued below

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Bailey, Kathleen May 2001.

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  • Bailey, Kathleen

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Behavioral economic theory describes a relation between response requirement and magnitude of reinforcement, and combines these variables into one independent variable (unit price) affecting operant behavior. This study investigated the relative effects of cumulative feedback on consumption for money as a commodity. Subjects were exposed to ranges of unit prices with or without a cumulative feedback bar on the computer screen indicating monetary earnings. For all participants in this study, consumption of money was a decreasing function of unit prices and the results from the present study are consistent with the behavioral economic prediction that increasing the unit price of a commodity will decrease consumption of that commodity. Analyses of demand curves, elasticity coefficients and response rates suggested differences between Feedback and No Feedback groups, although these were small and not statistically significant. The small differences observed were consistent with a behavior strengthening effect of feedback.

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  • May 2001

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  • Sept. 25, 2007, 9:25 p.m.

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  • Oct. 9, 2008, 12:12 p.m.

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Bailey, Kathleen. The Effects of Cumulative Consumption Feedback On Demand For Money As A Commodity, thesis, May 2001; Denton, Texas. (https://digital.library.unt.edu/ark:/67531/metadc2823/: accessed May 26, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; .

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