High altitude mountain economics: Measuring the effects of extreme conditions on consumer behavior

The hypoxic conditions of extreme altitudes have long been known to have psychological and physiological effects on humans. Such conditions may also impact an individual’s economic valuation and decision-making process relative to non-hypoxic conditions. Building on prior work both in the psychology of economics and the effects of hypoxia on psychology and decision making, this study gathered consumer decision data at low altitude conditions and on several high altitude mountains to observe any statistical differences in valuation and consumer behavior. High altitude mountains provided an in situ high altitude environment with a population of people that were usually at low altitudes, i.e., they were more likely to feel effects of high altitudes. The consumer decision data was gathered via a survey instrument measuring willingness to accept compensation. It was administered at low altitude via the internet and in person by the author at several high altitude mountain locations on three continents. The present study found statistically different responses to the survey between the low altitude and the high altitude locations, suggesting that extreme environments such as high altitude can impact consumer behavior and the decision-making process. More broadly, consumer behavior and decision-making may vary from the “expected” in situations in which consumers are taken temporarily from their normal conditions.