The attraction effect and its explanations

Geoffrey Castillo

Games and Economic Behavior, 2020, vol. 119, issue C, 123-147

Abstract: The attraction effect violates choice consistency, one of the central assumptions of economics. I present a risky choice experiment to test it and disentangle some of its explanations. I find the attraction effect, but in a smaller magnitude than previously thought. I uncover a ‘range effect’ that shows that people weight more attributes whose range increases. I also show that the aggregate results hide considerable heterogeneity between subjects.

Keywords: Attraction effect; Asymmetric dominance effect; Decoy effect; Range effect; Risky choice; Individual decision-making (search for similar items in EconPapers)
JEL-codes: C91 D11 D80 D90 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:119:y:2020:i:c:p:123-147

DOI: 10.1016/j.geb.2019.10.012

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