We present a novel experimental method for investigating consumer choice. The Surplus Identification (S-ID) task is inspired by studies of detection in perceptual psychophysics. It employs a forced-choice procedure, in which participants must decide whether a novel product is worth more or less...

Two laboratory studies investigated the effect of price transparency on consumers' decision-making in the residential electricity market. The first tested whether consumers have difficulties when confronted with unit prices expressed as discounts from standard rates, which vary between...

We hypothesise and confirm a substantial framing effect in relation to whether people opt for an annuity on retirement. Two laboratory experiments were conducted in collaboration with a national pensions regulator. Individuals demanded a higher annuity rate when pensions were initially conceived...

People underestimate long-term growth in savings because they linearise exponential growth - a phenomenon known as exponential growth bias (EGB). This bias has implications for multiple financial decisions, particularly those relating to pensions. We hypothesised that underestimation might be...

This review identifies specific problems for consumers in credit, investment and insurance markets. It identifies multiple product features that are either poorly understood by many consumers or that generate systematic biases in their decisions.

Replacing car travel with walking and cycling lowers emissions, improves air quality and makes communities healthier. Rates of active travel typically increase when dedicated infrastructure is implemented. But policymakers in multiple countries regularly contend with two obstacles: designing...

This study demonstrates how status quo bias (SQB) acts as an obstacle to active travel policy. A pre-registered experiment was undertaken to measure the strength of SQB and to illuminate its likely causes. A large, nationally representative sample evaluated descriptions of a town layout designed...

Failure to switch service provider is viewed as leaving money on the table. While psychological hassle and switching costs are often invoked to explain the observed inertia, there is little empirical research that directly measures barriers to switching in retail finance markets. This study uses...

The present research investigates how consumers engage with the Irish financial retail market when choosing and switching financial products. Data were gathered from a nationally representative sample of 2,903 individuals who are involved in their household financial decisions. The study used...

A Personal Contract Purchase (PCP) plan is an innovative, complex and increasingly popular form of car finance. Consumers pay a deposit and monthly payments, but instead of paying off the total value of the car, they pay off the depreciation over a specified term. We used an experiment to...