Compromise effect and consideration set size in consumer decision-making

Cited 0 time in webofscience Cited 0 time in scopus
  • Hit : 357
  • Download : 0
The compromise effect dictates that a decision-maker chooses a middle option over an extreme one given a set of choice alternatives since choosing an intermediate option is easier to justify, less likely to be criticized, and is consistent with loss aversion. Our experiment is designed to identify whether the connection between the extremeness of the options and the size of the consideration sets is economically and statistically significant and thus would have important behavioural implications. Specifically, we compare decision-making under small and large consideration sets where the extremeness of the comprising choice options is high, as opposed to low. The results demonstrate that an increase in consideration set size leads to weaker compromise effect (i.e. boundary condition) but when composed of high extremeness, strengthens the compromise effect.
Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
Issue Date
2018-01
Language
English
Article Type
Article
Keywords

CHOICE

Citation

APPLIED ECONOMICS LETTERS, v.25, no.8, pp.513 - 517

ISSN
1350-4851
DOI
10.1080/13504851.2017.1340567
URI
http://hdl.handle.net/10203/240400
Appears in Collection
MG-Journal Papers(저널논문)
Files in This Item
There are no files associated with this item.

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0