Compromise effect and consideration set size in consumer decision-making
Jaewon Yoo,
Hyunsik Park and
Wonjoon Kim ()
Applied Economics Letters, 2018, vol. 25, issue 8, 513-517
Abstract:
The compromise effect dictates that a decision-maker chooses a middle option over an extreme one given a set of choice alternatives since choosing an intermediate option is easier to justify, less likely to be criticized, and is consistent with loss aversion. Our experiment is designed to identify whether the connection between the extremeness of the options and the size of the consideration sets is economically and statistically significant and thus would have important behavioural implications. Specifically, we compare decision-making under small and large consideration sets where the extremeness of the comprising choice options is high, as opposed to low. The results demonstrate that an increase in consideration set size leads to weaker compromise effect (i.e. boundary condition) but when composed of high extremeness, strengthens the compromise effect.
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2017.1340567 (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:taf:apeclt:v:25:y:2018:i:8:p:513-517
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20
DOI: 10.1080/13504851.2017.1340567
Access Statistics for this article
Applied Economics Letters is currently edited by Anita Phillips
More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().