Multialternative context effects obtained using an inference task.

When decision-makers are faced with a choice among multiple options that have several attributes, preferences are often influenced by how the options are related to one another. For example, consumer preferences can be influenced, and even reversed, by the context defined by available products. This article discusses three standard context effects found in the preferential-choice literature: the attraction, similarity, and compromise effects. While decision theorists have attempted to explain these three effects under single modeling accounts, it has never before been demonstrated that these effects can be obtained within the same experimental paradigm. A set of experiments is described that demonstrate the three effects in an inference task. The paradigm is completely novel, as no previous experimental work has examined the standard context effects in inference. The experiments also add to evidence that the effects are not confined to choices among options with affective value, such as consumer products. The experimental results provide evidence that these effects might be a general property of human choice behavior and bring into question explanations of the effects that are based on the concept of loss-aversion asymmetry.