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Area of Science:

  • Behavioral Economics
  • Supply Chain Management
  • Psychology

Background:

  • The "face effect" describes how facial appearance influences social and economic interactions.
  • Pricing behavior in supply chains is complex and can be affected by various psychological factors.

Purpose of the Study:

  • To investigate the impact of facial traits (attractiveness, trustworthiness, dominance) on pricing behavior within a supply chain game.
  • To determine if seeing a retailer's face alters pricing decisions compared to not seeing it.

Main Methods:

  • An experiment was conducted using a supply chain game framework.
  • Participants made pricing decisions under conditions where they could or could not see the retailer's face.
  • Subjective evaluations of facial traits (self-reported and by others) were collected.

Main Results:

  • Decision-making distributions differed significantly between conditions with and without visual facial exposure.
  • Complex relationships were observed between decision behaviors and specific facial traits.
  • Both self-perceived and externally evaluated facial traits demonstrably affected pricing choices.

Conclusions:

  • Facial appearance plays a significant role in shaping pricing behavior in supply chain interactions.
  • Subjective judgments of facial traits introduce a "face effect" that influences economic decisions.
  • Future research should explore the nuances of facial perception in economic contexts.