THE VALUE OF TIME SPENT IN PRICE-COMPARISON SHOPPING - SURVEY AND EXPERIMENTAL-EVIDENCE

The value that consumers place on time spent in price-comparison shopping is central to the economics of information theory and models of consumers' search behavior. Yet few empirical studies have examined consumers' subjective value of time. Building on Gary Becker's work, this article presents two tests of a model of the subjective value of time. In an effort to explain consumers' subjective value of time while they are price-comparison shopping, the model introduces perceived enjoyment of shopping as a new explanatory variable. The findings reveal that respondents incorporate both wage rates and perceived enjoyment of price-comparison shopping into their subjective value of time.