• experiment
• cognitive bias
• econometric model
• contrast principle

Cognitive bias is a phenomenon which is analyzed by the main figures in the behavioral economics: the Nobel price Kahneman was one of the main contributors of the studies in this field. One of the main examples of cognitive bias is the so called “Anchoring effect”, in which a certain decision taken by an individual is influenced by an “anchor”, a target point which can modify his choice. However, there is another psychological phenomenon related to anchoring effect: the psychologist Robert Cialdini, in his book “The psychology of persuasion”, talks about a certain principle in the human world, the contrast principle, which explains the way people see one thing when it is compared with others. Our brain tends to see one thing differently when it is seen alone or when it is seen before or after other similar things, especially if they are better or worse than it. At this point, how can it be tested if this principle effectively works in reality? In this work, we will present empirical evidence of the contrast principle using data on preferences. We will introduce and implement a new family of econometrics model, specifically designed to address our goal.
The first chapter of this thesis presents a brief introduction and explanation of the cognitive biases, the anchoring effect and the contrast principle.
The second chapter introduces the experiment, and describes the way data were collected.
The third chapter presents the econometric model used in this work, proposing a variety of model specifications.
The fourth and last chapter shows the results of the analysis, trying to provide some insights about the behavior of the variables under study.