Definition: Representativity bias

Category: Consumer Price Index

Bias in a basket index that results from the use of quantities that are not representative of the two periods compared; that is, that systematically diverge from the average quantities consumed in the two periods. For example, representativity bias may result from the use of an old, out-of-date basket which deviates systematically from the baskets in both the periods compared. In practice, representativity bias tends to be similar to substitution bias, as it is attributable to the same economic factors. http://www.ilo.org/public/english/bureau/stat/guides/cpi/index.htm