Paying for no reason? (Mis-)perceptions of product attributes in separate vs. joint product evaluation

Consumer decision-making involves the evaluation of options either in isolation or in relation to other alternatives present at the environment. According to Hsee’s evaluability hypothesis, it is easier to evaluate product attributes when they are juxtaposed (i.e., presented jointly) than when they are presented in isolation from each other. Recent research has provided some support to the evaluability hypothesis for the attribute of perceived product quantity. The present research tests the hypothesis in relation to the attribute of perceived fairness. In two experiments, we show that when participants evaluate products in isolation from each other, they err in their judgment of product quantity, and, consequently, they mis-attribute fairness to the seller. In a third experiment, we further show that the inclusion of constant yet unfair price information does not affect the fairness and price judgments. These findings provide evidence for the psychological plausibility of the evaluability hypothesis for the attributes of fairness and product quantity. Moreover, they suggest that isolated product evaluation may be systematically suboptimal for consumers, even when pricing information is included. Therefore, effective consumer decision-making will benefit by allowing the joint evaluation of alternatives.     

Review Essay: Whither Rural Community Development?

Partnerships in Communities: Reweaving the Fabric of Rural America, by Jean Richardson. Small Town and Rural Economic Development: A Case Studies Approach, edited by Peter V. Schaeffer and Scott Loveridge.     

Predictors of out-of-pocket medical expenditures in low-income households

From a sample of low-income households, out-of-pocket medical expenses are found to average about $25 per month. For each household, these expenses vary with annual income, type of insurance for medical care, priority of medical expenses, ethnicity, and number of ill family members. Expenses are reported for households with different socioeconomic characteristics and composition. Multiparticipation in insurance programs is shown. Fourteen percent of the survey participants say they have no insurance, public or private. Thirty-three percent participate in Medicaid.Flora L. Williams is an Associate Professor in Consumer Sciences and Retailing at Purdue University, West Lafayette, IN 47907. She received her Ph.D. from Purdue University and includes family economic well-being, and financial problems and expenditures among her research interests.Amy Hagler received her M.S. from Purdue University in Consumer Sciences and Retailing.Mary Pritchard is an Associate Professor in the Department of Human and Family Resources at Northern Illinois University, DeKalb, IL 60115-2854. Her Ph.D. was earned at Purdue and her areas of research focus on family economic well-being and economic socialization of adolescents.Marshall A. Martin is a Professor of Agricultural Economics at Purdue University. His research addresses agriculture and food policy, and economic assessment of emerging agricultural technology.William C. Bailey is an Assistant Professor of Marketing at the University of Indianapolis, 1400 E. Hanna Avenue, Indianapolis, IN, 46227-3697. He received his Ph.D. from Texas Tech University and focuses his research on economic psychology and health care cost.     

Value provided by interfamily economic exchange of goods and services in two cultures

The value of goods and services provided through interfamily economic exchange is examined from a household survey. The existence of an exchange system in society was documented. Over half of the respondents reported that economic transfers between families were important to the quality of their life. Estimated values varied with personal health conditions, importance attached to providing goods and services, years of residence in the community, primary recipient of services, ethnic culture, sex of respondent, and type of service provided. Estimated values can be used for calculating economic loss in community disruption and relocation, measuring family full income, and estimating the importance of nonmarket economic activity in society.The study contributes to interregional Agricultural Experiment Station Research Project NC-128 Quality of Life as Affected by Area of Residence. Cooperating States: Arizona, California, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Nevada, and Texas.Dr. Williams is an Associate Professor in the Department of Consumer Sciences and Retailing, Purdue University, West Lafayette, Indiana 47907. Her Ph.D. was received from Purdue in Family Economics and Management. Current research areas are income adequacy, economic security, financial problems, and financial counseling.     

The Premise and Promise of Citizenship and Civil Society for Renewing Democracies and Empowering Sustainable Communities

State regimes have launched policies to reinvent government and regenerate communities in peripheral impoverished rural and urban areas to build sustainable communities and reduce poverty. We investigate the impact of policy concepts–the empowerment paradigm, citizenship as citizen participation and inclusion, and associations between the state and civil society–on local areas' success in leveraging dollars to foster sustainable economic and community development in persistently poor rural areas of the U.S. The thirty-three rural sites of the Empowerment Zone/Enterprise Communities Initiative of the Clinton-Gore Administration comprise our database. We find that empowering area-based, low-income residents through the election mechanism to choose their representatives on the local sites' governing board is strongly and significantly related to both inclusion and citizen participation. Also, the presence of elected citizens with connections to civil society on the governing body contributes strongly to later success in leveraging dollars.     

Social infrastructure and community economic development strategies: the case of self-development and industrial recruitment in rural Iowa

This research examines the relationship between features of community social organization and the existence of two contrasting types of economic development, self-development and industrial recruitment in rural places. Self-development is an endogenous form of development relying primarily on entrepreneurism and local resources. Industrial recruitment is an exogenous form of development that seeks outside investors and firms to locate in the community. Using data collected in a statewide sample of 99 Iowa communities, we hypothesize that social infrastructure, the group-level interactive aspects of community organizations and institutions, is more strongly related to the existence of self-development than industrial recruitment. A key finding is that social infrastructure, measured by the existence of active community organizations, businesses that support local community projects, community-wide fund-raising capacity, and extra-local linkages to peer communities and state government, is positively associated with the existence of self-development. The relationship between social infrastructure and industrial recruitment is also significant but more modest. Findings indicate that a community's social organization can be a resource for development, but may be more appropriate for endogenous development efforts than exogenous ones.