The role of inference in context effects: Inferring what you want from what is available

Drazen Prelec, Birger Wernerfelt, Florian Zettelmeyer

Research output: Contribution to journalArticlepeer-review

81 Scopus citations

Abstract

It has recently been suggested that a number of experimental findings of context effects in choice settings can be explained by the ability of subjects to draw choice-relevant inferences from the stimuli. We aim to measure the importance of this explanation. To do so, inferences are assessed in an experiment using the basic context-effect design, supplemented by direct measures of inferred locations of available products on the price-quality Hotelling line. We use these measures to estimate a predicted context effect due to inference alone. For our stimuli, we find that the inference effect accounts for two-thirds of the average magnitude of the context effect and for about one-half of the cross-category context-effect variance.

Original languageEnglish (US)
Pages (from-to)118-125
Number of pages8
JournalJournal of Consumer Research
Volume24
Issue number1
StatePublished - Jun 1 1997

ASJC Scopus subject areas

  • Business and International Management
  • Marketing
  • Economics and Econometrics

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