The Attraction Effect in Experience-based Decisions

Previous demonstrations of the attraction effect were limited to explicitly described attribute values (including numerically indexed attributes, such as gambles' outcomes and their likelihoods, or perceptual attributes, such as rectangles' height and width). However, in many real-life decisions, such as the choice of a preferred grocer, people decide based on their past experience with the options' attributes (e.g., the frequency and magnitude of product discounts over time). We examine whether the attraction effect extends from description-based to experience-based choice between gambles. Our results demonstrate that the attraction effect exists but is less prevalent in experience-based than in description-based choice. This is because the dominance relationship, necessary for the attraction effect to occur, is more difficult to recognize in experience-based choice. Yet, when dominance is recognized, people may use it to guide difficult trade-off choices. We discuss practical implications.