The compromise effect in action: Lessons from a restaurant's menu

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2016
Volume: 128
Issue: C
Pages: 14-34

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The compromise effect refers to individuals’ tendency to choose intermediate options. Its existence has been demonstrated in a large number of hypothetical choice experiments. This paper uses field data from a specialties restaurant to investigate the existence and strength of the compromise effect in a natural environment. Despite the presence of many factors that potentially weaken the compromise effect (e.g., a very large choice set, the opportunity to choose familiar options), we find evidence for it both in descriptive statistics and regression analyses. Options which become a compromise after a change in the choice set gain on average five percent in market share.

Technical Details

RePEc Handle
repec:eee:jeborg:v:128:y:2016:i:c:p:14-34
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29