Not All Decoys Are Created Equal

ĎURINÍK, Michal. Not All Decoys Are Created Equal. In 9th Annual Australia New Zealand Workshop on Experimental Economics. 2014.

Basic information

• Original name: Not All Decoys Are Created Equal
• Authors: ĎURINÍK, Michal (703 Slovakia, guarantor, belonging to the institution).
• Edition: 9th Annual Australia New Zealand Workshop on Experimental Economics, 2014.

Other information

• Original language: English
• Type of outcome: Presentations at conferences
• Field of Study: 50200 5.2 Economics and Business
• Country of publisher: Australia
• Confidentiality degree: is not subject to a state or trade secret
• RIV identification code: RIV/00216224:14560/14:00077642
• Organization unit: Faculty of Economics and Administration
• Keywords (in Czech): návnada; výběr; posun preferencí
• Keywords in English: Decoy; choice; preference shifts

Abstract

Preference shifts are known to occur when an option deemed irrelevant by economic theory is included in the choice set. This decoy option C is fully (or nearly) dominated to one of the original options A, but there is no dominance relationship between this option C and the other original one B. Preference shifts towards the dominating option A occur and the proportion of people selecting B shrinks. This experiment did investigate, how individuals different in their cognitive reflection respond to introduction of either fully dominated decoy, or nearly dominated one. Findings are as follows: For dominated decoy, there is negative relationship between cognitive reflection and likelihood of preference shift. For nearly dominated decoy, no such relationship was found, suggesting these two types of decoy effects stem from different cognitive processes.

Links

• MUNI/A/0845/2013, interní kód MU: Name: Možnosti využití experimentálních a behaviorálních přístupů ve veřejné ekonomii

Investor: Masaryk University, Category A