Caution! Warnings as a Useless Countermeasure to Reduce Overconfidence? An Experimental Evaluation in Light of Enhanced and Dynamic Warning Designs

People often display excessive overconfidence when providing interval estimates, which biases decision‐making. Research has investigated the various measures to effectively reduce overconfidence, and the use of warnings has subsequently been considered to have a negligible reduction effect. We demonstrate with two separate experiments that the impact of warnings has to be reviewed in light of dynamic warning designs and cognitive warning process models. In experiment 1, in contrast to previous studies that only used unstructured warnings, we implement a warning incorporating some core elements of a structured warning design based on research in the fields of human factors and ergonomics. Furthermore, accounting for recent developments in the warning literature, we distinguish between static and dynamic warning design. In experiment 2, we examine the effectiveness of different elements of dynamic warnings. We show that a significantly higher reduction of overconfidence can be achieved by combining a structured warning content with a dynamic stimulus change to increase the warning's noticeability. Copyright © 2016 John Wiley & Sons, Ltd.     

How valuable is a well‐crafted design and name brand?: Recognition and willingness to pay

Preferences for similarly designed consumer products, evaluated blind and branded and also with and without prices, were tested in a consumer setting. The consumer's perceptual experience led to preference of the well‐crafted high‐priced option. This preference was enhanced by priming consumers with background information about the brand, perhaps causing the subjects to guess which choice was the well‐known brand before evaluation. Preferences for that choice increased again when brand names were visible during evaluation. When actual prices were added to the evaluations, preferences for the well‐known brand were very robust to high prices, indicating the strength of the brand name. Using the least preferred option and the lowest price as an anchor, the consumers' price threshold to pay for the preferred design and the brand name was computed. Attempts to explain and predict individual differences of choices using measures of inherent design acumen, prior experience, and purchasing behavior were largely unsuccessful. Copyright © 2011 John Wiley & Sons, Ltd.