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The Joint Effect of Social Comparison and Social Distance on Evaluation of Intertemporal Choice Outcomes in Event-related Potential Studies
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Context-dependent choice and evaluation in real-world consumer behavior.

A Ross Otto1, Sean Devine2, Eric Schulz3

  • 1Department of Psychology, McGill University, Montreal, Canada. ross.otto@mcgill.ca.

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Summary
This summary is machine-generated.

Decision-making is context-dependent, meaning choices are influenced by available options. This study confirms context effects in real-world decisions, like choosing restaurants, not just lab settings.

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Area of Science:

  • Decision Science
  • Neuroscience
  • Behavioral Economics

Background:

  • Decision-making is known to be context-dependent, where the value of an option is influenced by other available options within a choice set.
  • Previous research on context effects has primarily utilized small-scale laboratory studies with limited choice sets.
  • The applicability of context effects to real-world decision-making, characterized by large choice sets and experiential learning, remains largely unexplored.

Purpose of the Study:

  • To investigate the presence and impact of context-dependent choice in real-world decision-making scenarios.
  • To determine if subjective valuations of options are influenced by the surrounding choice context in naturalistic settings.
  • To provide empirical evidence for context effects beyond artificial laboratory environments.

Main Methods:

  • Analysis of a large-scale restaurant rating dataset and two independent replication datasets.
  • Examination of user choices in relation to the ratings of available options within choice sets.
  • A follow-up laboratory experiment using hypothetical choice sets calibrated to real-world data.

Main Results:

  • Users made fewer optimal choices in choice sets containing higher-rated options, indicating context-dependent decision-making.
  • Post-choice ratings of restaurants were systematically influenced by the ratings of unchosen alternatives.
  • Laboratory experiments confirmed that subjective valuations are scaled according to the choice context.

Conclusions:

  • Context-dependent choice is a significant factor in real-world decision-making, extending beyond laboratory findings.
  • Subjective valuations and choice behaviors are demonstrably influenced by the surrounding options in naturalistic settings.
  • These findings support a generalizable mechanistic account of context effects in decision-making across diverse environments.