How do we process prices? Electrophysiological evidence of componential analysis
Fernando Ojedo1,2, Pedro Macizo1,2
1Departamento de Psicología Experimental, Facultad de Psicología, Universidad de Granada, Spain.
British Journal of Psychology (London, England : 1953)
|September 26, 2019
Summary
This study investigated how people process prices, like "8 euro." Findings show that both the number and currency are analyzed separately, supporting a componential model of price perception.
Area of Science:
- Cognitive Psychology
- Neuroscience
Background:
- Understanding how humans process numerical and symbolic information is crucial.
- Previous models proposed holistic processing of prices, where number and unit are processed as a single entity.
Purpose of the Study:
- To investigate whether the processing of prices involves separate analysis of numerical digits and monetary units.
- To challenge the holistic model of price processing by examining componential analysis.
Main Methods:
- Event-related potentials (ERPs) were recorded during a price comparison task.
- Participants compared pairs of prices presented in compatible and incompatible formats.
- Compatible trials: digit and unit aligned (e.g., 7 euro > 4 cent).
- Incompatible trials: digit and unit misaligned (e.g., 4 euro < 7 cent).
Main Results:
- A compatibility effect was observed, modulating ERPs between 350-450 ms.
- Incompatible trials showed more negative ERP amplitudes compared to compatible trials.
- This pattern indicates differential processing based on the alignment of digit and monetary unit.
Conclusions:
- Prices are processed in a componential manner, with digits and monetary units analyzed separately.
- The findings challenge holistic models and support a componential framework for multi-symbol number comparison.
- This suggests that the constituents of multi-symbol magnitudes are processed independently.
