ĎURINÍK, Michal. How Irrelevant Alternatives Influence Choices: Cognitive Reflection Related to Decoy Effect. In The 6th Xiamen University International Workshop on Experimental Economics. 2016.
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Basic information
Original name How Irrelevant Alternatives Influence Choices: Cognitive Reflection Related to Decoy Effect
Authors ĎURINÍK, Michal.
Edition The 6th Xiamen University International Workshop on Experimental Economics, 2016.
Other information
Original language English
Type of outcome Conference abstract
Field of Study 50200 5.2 Economics and Business
Country of publisher China
Confidentiality degree is not subject to a state or trade secret
WWW URL
Organization unit Faculty of Economics and Administration
Keywords in English Cognitive reflection; alternatives; choice; System 1; System 2
Tags International impact, Reviewed
Changed by Changed by: Ing. Bc. Michal Ďuriník, Ph.D., učo 206408. Changed: 14/1/2017 12:17.
Abstract
An alternative that nobody finds attractive: how can it change our decisions? Violating the Independence from Irrelevant Alternatives axiom, decoy options included in choice sets may induce preference shifts. As noted by Pettibone and Wedell (2000), a person may be indifferent between A and B in pairwise choice, but she may strongly prefer A over B in a trinary choice that also includes decoy. Two types of decoys can be constructed: Dominated (D) decoy, that is inferior to A, and Nearly Dominated (ND) decoy, that is significantly worse than A in one attribute and only slightly better than A in the other attribute. This experiment investigates the conjecture of Dhar and Gorlin (2013) that D-decoys and ND-decoys operate within different processes: D-decoy utilizing System 1 and ND-decoy utilizing System 2. Employing Cognitive Reflection Test I find the degree of System 1 / System 2 engagement to predict D-decoy performance significantly (the higher System 2 engagement, the lower decoy success rate). I observe no such relation for ND-decoy performance, though. This suggests that D and ND decoys do, as hypothesized, operate within different cognitive processes.
Links
MUNI/A/1021/2015, interní kód MUName: Behaviorálně ekonomické experimenty v marketingu a managementu
Investor: Masaryk University, Category A
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