Marieke Huysentruyt
Marieke Huysentruyt is a researcher and co-author of the 2010 Journal of Risk and Uncertainty paper on how people value extended warranties.
Who they are
The work of Marieke Huysentruyt reaches this site through the paper listed below. The name is tied to Extended Warranty, Probability Neglect.
Key papers
Huysentruyt, M., & Read, D. (2010). How do people value extended warranties? Evidence from two field surveys. Journal of Risk and Uncertainty, 40(3), 197-218. What it reports: Two field surveys. Consumers greatly overestimate the likelihood of breakage and repair cost, but this does not fully explain extended warranty purchases. Purchases track the severity of consequences of going uninsured, not their probability. Expected emotional benefit of holding a warranty was the strongest predictor of buying and of willingness to pay. Higher cognitive skills reduced overestimation of economic factors, but emotion still weighed heavily.
Key ideas
Extended Warranty: An optional contract sold with a product that promises repair or replacement for a set period beyond the standard cover.
Probability Neglect: The pattern in which a decision tracks how bad an outcome would be rather than how likely it is.
Sources
- Huysentruyt, M., & Read, D. (2010). How do people value extended warranties? Evidence from two field surveys. Journal of Risk and Uncertainty, 40(3), 197-218.