THE TRANSACTION INDEX - A METHOD FOR STANDARDIZING COMPARISONS OF TRANSACTION CHARACTERISTICS ACROSS DIFFERENT CONTEXTS

Authors
Citation
Jj. Halpern, THE TRANSACTION INDEX - A METHOD FOR STANDARDIZING COMPARISONS OF TRANSACTION CHARACTERISTICS ACROSS DIFFERENT CONTEXTS, Group decision and negotiation, 6(6), 1997, pp. 557-572
Citations number
18
ISSN journal
09262644
Volume
6
Issue
6
Year of publication
1997
Pages
557 - 572
Database
ISI
SICI code
0926-2644(1997)6:6<557:TTI-AM>2.0.ZU;2-E
Abstract
This article develops a transaction index (TI), a new method that faci litates comparisons of pricing behavior between reference and target g roups of transactors across different types of transactions. The TI co mpares the target price, derived from the target group, to a transacti on zone, which is a range of plausible prices in a negotiation establi shed by the reference groups. These two groups should be conceptually related, for example, through a social association. Statistically, the index can bring transactions at widely differing price levels to a co mmon level and standardize price volatility to facilitate comparisons across transactions. Conceptually, it incorporates a comparison of two groups into a single measure so that their relationship can be analyz ed in terms of other variables. An application of a TI to friends' and strangers' pricing decisions reveals richer associations than those o bserved through more traditional analytic approaches.