Introduction

While existing literature often attributes WTP to rational or qualitative factors—such as perceived authenticity, construction quality, or internal reference prices—behavioral economics suggests a paradigm shift. Prospect theory reveals that human economic decisions are rarely purely rational; instead, they are systematically influenced by “cognitive biases” or mental heuristics. Although recent tourism research has begun to embrace this behavioral lens, the focus has predominantly remained on macro-level decisions, such as destination choice or hotel selection. A significant knowledge gap remains regarding how these mental shortcuts operate during micro-level economic interactions, particularly at the moment of purchasing handicrafts as cultural-identity commodities.

Despite the significance of these psychological mechanisms, empirical studies remain scarce, often confined to controlled laboratory settings or modern retail environments rather than the complex, human-centric atmosphere of authentic traditional markets. In the Iranian context, while research has extensively explored the supply chains and marketing of handicrafts, it has largely overlooked the hidden psychological mediators of valuation. This study addresses this void by focusing on the traditional bazaars of the Hawraman/Uramanat Cultural Landscape, a UNESCO World Heritage site since 2021. As urban tourists navigate these stepped bazaars, they encounter an overwhelming array of sensory-cultural stimuli—unique architectural geometry, local dialects, and indigenous scents—which can potentially attenuate analytical processing and intensify cognitive biases. Consequently, this research seeks to identify and measure the role of these hidden mental mediators in shaping the final Willingness to Pay, specifically addressing which cognitive biases possess the greatest explanatory power in the unique cultural-spatial context of Hawraman.



Methodology

The structured questionnaire combined two scale types: a seven-point Likert scale for latent constructs and an open-ended numerical question using the Contingent Valuation Method for the dependent variable, Willingness to Pay (WTP). The instrument comprised three sections: socio-demographic controls (gender, age, nationality, education, monthly income); adapted items measuring four cognitive biases—Anchoring, Framing, Halo Effect, and Social Proof—along with the mediating variable of Perceived Authenticity of the Bazaar Servicescape; and a realistic purchase scenario to elicit WTP in Tomans. To enhance ecological validity and activate the Endowment Effect, three standardized physical handicraft products were used instead of images, with their quality documented but prices undisclosed. A modular questionnaire design, with neutral transitional statements and randomized block rotation every 50 questionnaires, mitigated cognitive fatigue and order effects. Each respondent answered the full set of cognitive bias items for only one randomly assigned primary product, while only numerical WTP was recorded for the other two. A pilot study (n=40)

Content validity was verified by an expert panel, and the pilot test demonstrated strong preliminary reliability and convergent validity. Final data analysis will be performed using SPSS 28 for descriptive statistics and SmartPLS 4 with a 3000-sample bootstrapping procedure to examine both direct paths and the hypothesized moderating interactions.



Results and Discussion

The results of the structural model (PLS-SEM) revealed that cognitive biases exert a profound and systematic influence on tourists’ WTP within the Hawraman cultural landscape. The measurement model demonstrated high reliability and validity, with all constructs (Anchoring, Framing, Halo Effect, Social Proof, and Perceived Authenticity) exceeding threshold values for AVE (>0.50) and composite reliability (>0.70). The structural model’s goodness-of-fit was confirmed (GoF=0.525), and the explanatory power for WTP (R²=0.616) signifies that cognitive heuristics are central, rather than peripheral, to the valuation process in these traditional settings.

The empirical findings confirm that cognitive biases operate as an interconnected system. “Framing bias” emerged as the most potent driver of WTP (β=0.760\beta=0.760β=0.760), suggesting that when local handicrafts are framed as “living cultural heritage” rather than mere commodities, tourists’ willingness to invest increases significantly. This aligns with prospect theory (Kahneman & Tversky, 1979) and validates the premise that System 1 (intuitive) thinking dominates in the sensory-rich Hawraman services cape. Furthermore, the “anchoring bias” (β=0.60\beta=0.60β=0.60) proved highly effective, as initial price disclosures by vendors act as strong mental benchmarks, effectively narrowing the bargaining range and shifting tourist expectations.

A critical theoretical contribution of this study is the identified mediating role of “Perceived Authenticity” between the “Halo Effect,” “Social Proof,” and WTP. Unlike previous research that treated these biases as direct predictors, our study demonstrates that they function through a cognitive filter of authenticity. The UNESCO World Heritage designation creates a powerful halo that boosts perceived product quality, while social proof serves as a heuristic for tourists to mitigate uncertainty in a unique, immersive environment. This “authenticity-mediated” model explains why traditional bazaars act as “cultural-sensory services capes”—they do not merely sell goods; they offer validated experiences that legitimize cognitive shortcuts.



Conclusion

The concept of “Behavioral Willingness to Pay” formulated in this study challenges the traditional “homo economicus” paradigm in tourism research. It underscores the imperative to interpret traditional markets as “Heritage-Sensory Services capes,” where every spatial element—from architectural textures to ambient olfactory cues—serves as a cognitive heuristic that facilitates higher valuation. For practitioners, the managerial implications are clear: vendors can significantly enhance the economic value of handicrafts without altering physical product quality by shifting sales narratives from “discounts” to “cultural commitments.” Likewise, destination managers must safeguard the UNESCO World Heritage brand’s “halo” to ensure long-term economic sustainability for indigenous communities.

Based on our findings, cognitive biases in Iranian markets—particularly those with UNESCO World Heritage status—are not marginal factors; rather, they serve as strategic tools for enhancing tourists’ perceived value. However, realizing this potential requires sophisticated market management to preserve spatial authenticity and training vendors in the ethical application of these heuristics to accurately communicate the cultural value of products. The strategies proposed in this study—ranging from strengthening product storytelling to upgrading sensory-cultural infrastructures—provide a roadmap for converting “potential cognitive biases” into “actual economic value.” Although the quantitative nature of this study and its focus on Hawraman may limit its immediate generalizability to modern, non-heritage retail environments, the proposed theoretical model offers a robust framework for understanding the complexity of tourist decision-making in heritage spaces. This framework serves as a foundational step toward establishing a bridge between behavioral economics and cultural tourism management, paving the way for future research to refine the theory of “Heritage-Based Cognitive Biases.”