Repulsion Effect: When an Asymmetrically Dominated Decoy Increases the Competitor’s Choice Share

Pronobesh Banerjee ()
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Pronobesh Banerjee: Indian Institute of Management Kozhikode

No 356, Working papers from Indian Institute of Management Kozhikode

Abstract: The attraction effect refers to a phenomenon in which the introduction of an asymmetrically dominated decoy increases the choice share of the target. In this article, the authors explore certain conditions under which the introduction of an asymmetrically dominated decoy increases the choice share of the competitor, a phenomenon called the “repulsion effect.” They show that for products with skewed attribute values (i.e., products rated as exceptional on one of two attributes and mediocre on the other), the introduction of an extreme decoy favoring the target results in the repulsion effect rather than an attraction effect. The authors offer a categorization-based explanation for the repulsion effect and provide two studies in support.

Keywords: attraction effect; repulsion effect; choice share; decoys (search for similar items in EconPapers)
Pages: 15 pages
Date: 2020-02
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