The effect of incomplete information on the compromise effect

Journal Title: Judgment and Decision Making - Year 2012, Vol 7, Issue 2

Abstract

Most research on the compromise effect focuses on how consumers make their decisions in a complete information scenario; however, consumers generally lack sufficient information when they make purchase decisions. This research aims to explore the compromise effect with incomplete information. Three studies were conducted to examine the research hypotheses. The main findings was that consumers are more likely to choose the middle option when they have incomplete information than when they have complete information. Further, the compromise effect decreases when consumers can choose to defer their decision in an incomplete information scenario. Finally, the compromise effect decreases when consumers are asked to infer missing attribute values from the incomplete information.

Authors and Affiliations

Shih-Chieh Chuang, Danny Tengti Kao, Yin-Hui Cheng and Chu-An Chou

Keywords

Related Articles

A shift in strategy or “error”? Strategy classification over multiple stochastic specifications

We present a classification methodology that jointly assigns to a decision maker a best-fitting decision strategy for a set of choice data as well as a best-fitting stochastic specification of that decision strategy. Our...

Construal levels and moral judgment: Some complications

Eyal, T., Liberman, N., & Trope, Y., (2008). Judging near and distant virtue and vice. Journal of Experimental Social Psychology, 44, 1204–1209, explored how psychological distance influences moral judgment and found tha...

Focusing on what you own: Biased information uptake due to ownership

The endowment effect has been debated for over 30 years. Recent research suggests that differential focus of attention might play a role in shaping preferences. In two studies we investigated the role of biased attention...

It must be awful for them: Perspective and task context affects ratings for health conditions.

When survey respondents rate the quality of life (QoL) associated with a health condition, they must not only evaluate the health condition itself, but must also interpret the meaning of the rating scale in order to assi...

Nudge to nobesity II: Menu positions influence food orders

“Very small but cumulated decreases in food intake may be sufficient to have significant effects, even erasing obesity over a period of years” (Rozin et al., 2011). In two studies, one a lab study and the other a real-wo...

Download PDF file
  • EP ID EP677885
  • DOI -
  • Views 152
  • Downloads 0

How To Cite

Shih-Chieh Chuang, Danny Tengti Kao, Yin-Hui Cheng and Chu-An Chou (2012). The effect of incomplete information on the compromise effect. Judgment and Decision Making, 7(2), -. https://europub.co.uk/articles/-A-677885