Empirical Validation of the Attraction Effect Using Randomized Field Experiments: Real-World Evidence of Contextual Decision-Making Bias

Ryo Kato, Taiga Hashimoto and Takahiro Hoshino
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Taiga Hashimoto: Amazon Japan G.K., JAPAN
Takahiro Hoshino: Faculty of Economics, Keio University and RIKEN Center for Advanced Intelligence Project, JAPAN

No DP2024-33, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This study conducts a randomized field experiment to examine the presence of the attraction effect in real-world purchasing situations. While previous research has confirmed the existence of the attraction effect in controlled environments, it has not been extensively tested in actual purchasing scenarios where consumers tend to think more analytically and the products are not represented numerically scenarios. In real-life situations, consumers use their own resources, which can affect their decision-making processes. Especially, the attraction effect is shown to be often driven by System 1, which involves intuitive and quick decision-making. This study tests the effect in an online subscription service where consumers may rely more on System 2, where the creators were randomly encouraged to create a decoy option. The results show that the attraction effect exists in real-world contexts, with the addition of a decoy plan significantly boosting sales.

Keywords: Attraction effect; Randomized field experiment (search for similar items in EconPapers)
Pages: 29 pages
Date: 2024-10
New Economics Papers: this item is included in nep-exp
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