Decoy Effect and Cognitive Reflection
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| Year of publication | 2016 |
| Type | Appeared in Conference without Proceedings |
| MU Faculty or unit | |
| Citation | |
| Description | Violating the Independence from irrelevant alternatives axiom, decoy options in choice sets may induce preference shifts. As noted by Pettibone and Wedell (2000), although a person may be indifferent between X and Y in pairwise choice, he may strongly prefer X over Y in a trinary choice that includes decoy. Two types of decoys can be constructed: Dominated (D-decoys), that are inferior to X, and Nearly Dominated (ND-decoys), significantly worse in one and only slightly better than X in the other attribute. Here, I investigate the conjecture of Dhar and Gorlin (2013) that D and ND decoys operate within different System 1 / 2 processes. In this experiment Cognitive Reflection Test score is negatively related to Dominated Decoy performance and not related to Nearly Dominated Decoy performance. This suggests that D and ND decoys do, as hypothesized, operate within different cognitive processes. |
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