Peak-End Effect in the Workplace: a strategic option for firms?

The peak-end effect influences perception by placing comparatively large value on the peak and the end of an event. These perceptions influence experience, satisfaction, and decision-making. This paper looks at the potential for firms to exploit this mechanism. There are numerous reasons for thinking that it can, despite the lacking personnel economic research. These reasons are explored in a piecemeal fashion, with an emphasis on combining research of psychology, organizational science, and economics. This exploration suggests theoretical merit. Further preliminary work is then done on the technical matters of ethical concern, measurement of experience, and theoretical frameworks. Finally, an experimental design is given that could be used to provide empirical validation.