Changing Decisions: The Interaction between Framing and Decoy Effects

Abstract

Background: Cognitive biases are popular topics in psychology and marketing, as they refer to systematic cognitive tendencies in human thinking that deviate from logical and rational reasoning. The framing effect (FE) and the decoy effect (DE) are examples of cognitive biases that can influence decision making and consumer preferences. The FE involves how options are presented, while the DE involves the addition of a third option that influences the choice between the other two options. Methods: We investigated the interaction between the FE and the DE in the case of both incongruent (ID) and congruent (CD) decoys in a sample of undergraduates (n = 471). The study had a two (positive vs. negative valence) × three (original, congruent decoy, incongruent decoy) within-subject design. Results: The ID option reduces the FE in both positive- and negative-framed conditions compared to the controls, while adding the CD option increases the FE only in the positive-framed condition. Additionally, the inclusion of the CD option enhances the level of decision confidence, whereas no significant differences were found in the ID condition. Conclusions: Our findings gave new insights into the interplay between two of the most frequent cognitive biases.

Testing a decoy donation incentive to improve online survey participation: Evidence from a field experiment

“…Similar to Stoffel and colleagues [ 27 ], we find a distinct order effect, in that only presenting the monetary incentive first, followed by the decoy donation, heightened survey completion rates compared to reversed presentation. This is in line with another recent study that found the decoy effect is influenced by the framing of the decoy alternative [ 35 ]. In our experiment, the order effect exhibits a primacy bias, as individuals tend to consider the option listed first rather than last [ 36 ].…”

How Information Framing Nudges Acceptance of China’s Delayed Retirement Policy: A Moderated Mediation Model of Anchoring Effects and Perceived Fairness

“…Information framing is a theory-based persuasive communication strategy, aiming to facilitate changes in perception, judgment, attitude, and behavior by presenting equivalent appeals [25]. In the field of behavioral science, framing effects are often used to influence individual decision-making and behavioral preferences [26,27]. For example, by providing individuals with information framed around the benefits and public good nature of vaccines, it is possible to increase residents' intentions to get vaccinated [28].…”