Abstract
This study examines how numerical intuition for prices in euros and in the Portuguese currency escudos developed in Portugal after the euro changeover. Estimates of prices of 40 different products were collected in the two currencies and at four different times from November 2001 to April 2004. The results regarding price estimates in euros were more in accordance with a relearning hypothesis considering that price estimates become progressively more accurate by a process that is related to purchase frequency. It was also suggested that this is a very slow process and that prices in the former currency are not simply forgotten. On the contrary, the escudos remained a general benchmark for an extended period. The results regarding estimated price intuition and use of intuition in estimating prices are also consistent with a slow adaptation process. Implications for future euro changeovers are discussed.
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Acknowledgment
This research was supported by the Centro de Psicometria e Psicologia da Educação da Universidade de Lisboa. Special thanks to L. Garcia-Marques for his help with data analysis. Correspondence concerning this article should be addressed to J. Frederico Marques (jfredmarq@fpce.ul.pt), Faculdade de Psicologia e de Ciências da Educação, Universidade de Lisboa, Alameda da Universidade, 1649-013 Lisboa, Portugal.
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Marques, J.F. The Euro Changeover and Numerical Intuition for Prices in the Old and New Currencies. J Consum Policy 30, 393–403 (2007). https://doi.org/10.1007/s10603-007-9043-4
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DOI: https://doi.org/10.1007/s10603-007-9043-4