Not All Decoys Are Created Equal
| Authors | |
|---|---|
| Year of publication | 2014 |
| Type | Appeared in Conference without Proceedings |
| MU Faculty or unit | |
| Citation | |
| Description | 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. |
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