Context Dependence in Speed Dating: An Empirical Test of Relative Thinking

45 Pages Posted: 27 Feb 2018

See all articles by Florentin Krämer

Florentin Krämer

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics

Date Written: February 17, 2018

Abstract

Context influences decision making. However, evidence on the specific underlying mechanism is scarce. Since context dependence in decision making may impact consumers, firms and political agenda setters, exploring the precise mechanism through which choices are distorted is imperative. This paper provides evidence that expanding the utility range of one choice dimension leads decision makers to attach less weight to this attribute, in line with the notion of relative thinking. Context dependence is more pronounced if evaluators are female and survives extensive robustness checks. Implications for policy are discussed.

Keywords: context dependence, salience, focusing, speed dating, relative thinking

JEL Classification: B41, D03, D40

Suggested Citation

Krämer, Florentin, Context Dependence in Speed Dating: An Empirical Test of Relative Thinking (February 17, 2018). Available at SSRN: https://ssrn.com/abstract=3125505 or http://dx.doi.org/10.2139/ssrn.3125505

Florentin Krämer (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics ( email )

Ludwigstrasse 28
Munich, D-80539
Germany

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