The Effects of Decoy Gambles on Individual Choice

Kaisa Herne ()

Experimental Economics, 1999, vol. 2, issue 1, 40 pages

Abstract: A number of studies demonstrate that individual choice can be influenced by alternatives which should be irrelevant according to standard choice theory. In these studies it has been observed that introducing a decoy option, which is either asymmetrically dominated by a target option or which makes the target a compromise, increases the likelihood of choosing the target. A common feature of earlier research on decoy effects is the use of hypothetical choice tasks. The aim of this paper is to investigate decoy effects in a properly controlled experiment where subjects are given real incentives. Here, monetary gambles are used as alternatives. The results demonstrate that decoy effects persist despite the use of real incentives. Copyright Kluwer Academic Publishers 1999

Keywords: asymmetric domination effect; compromise effect; decoy effects; individual decision making (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (43)

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1009925731240 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:expeco:v:2:y:1999:i:1:p:31-40

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10683/PS2

DOI: 10.1023/A:1009925731240

Access Statistics for this article

Experimental Economics is currently edited by David J. Cooper, Lata Gangadharan and Charles N. Noussair

More articles in Experimental Economics from Springer, Economic Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().