A monetary measure of the strength and robustness of the attraction effect

Paolo Crosetto and Alexia Gaudeul

Economics Letters, 2016, vol. 149, issue C, 38-43

Abstract: The Attraction Effect has been studied in conditions of indifference among options and measured at the aggregate level. We introduce a new within-subjects design based on induced preferences and psychometrics. Our method yields two individual-level measures: the traditional, frequency measure and a new, monetary indicator. The monetary indicator measures the robustness of the effect to decreases in the relative utility of the target with respect to the competitor. We find choice frequencies consistent with the literature. Our monetary measure shows that subjects still prefer the target up to the point where it is 8% more expensive than the competitor.

Keywords: Asymmetric dominance; Attraction effect; Psychometrics; Induced preferences; Experimental economics (search for similar items in EconPapers)
JEL-codes: C91 D12 D83 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: A monetary measure of the strength and robustness of the attraction effect (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:149:y:2016:i:c:p:38-43

DOI: 10.1016/j.econlet.2016.09.031

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