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

Author

Listed:
  • Ryo Kato

    (Graduate School of Social Data Science, Hitotsubashi University and Research Institute for Economics & Business Administration (RIEB), Kobe University, JAPAN)

  • Taiga Hashimoto

    (Amazon Japan G.K., JAPAN)

  • Takahiro Hoshino

    (Faculty of Economics, Keio University and RIKEN Center for Advanced Intelligence Project, JAPAN)

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.

Suggested Citation

  • Ryo Kato & Taiga Hashimoto & Takahiro Hoshino, 2024. "Empirical Validation of the Attraction Effect Using Randomized Field Experiments: Real-World Evidence of Contextual Decision-Making Bias," Discussion Paper Series DP2024-33, Research Institute for Economics & Business Administration, Kobe University.
    • Handle: RePEc:kob:dpaper:dp2024-33
    as

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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2024-33.pdf
    File Function: First version, 2024
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

    Attraction effect; Randomized field experiment;

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