Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Context-Dependent Preferences

Amos Tversky and Itamar Simonson
Management Science
Vol. 39, No. 10 (Oct., 1993), pp. 1179-1189
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/2632953
Page Count: 11
  • Download ($30.00)
  • Cite this Item
Context-Dependent Preferences
Preview not available

Abstract

The standard theory of choice-based on value maximization-associates with each option a real value such that, given an offered set, the decision maker chooses the option with the highest value. Despite its simplicity and intuitive appeal, there is a growing body of data that is inconsistent with this theory. In particular, the relative attractiveness of x compared to y often depends on the presence or absence of a third option z, and the "market share" of an option can actually be increased by enlarging the offered set. We review recent empirical findings that are inconsistent with value maximization, and present a context-dependent model that expresses the value of each option as an additive combination of two components: a contingent weighting process that captures the effect of the background context, and a binary comparison process that describes the effect of the local context. The model accounts for observed violations of the standard theory and provides a framework for analyzing context-dependent preferences.

Page Thumbnails

  • Thumbnail: Page 
1179
    1179
  • Thumbnail: Page 
1180
    1180
  • Thumbnail: Page 
1181
    1181
  • Thumbnail: Page 
1182
    1182
  • Thumbnail: Page 
1183
    1183
  • Thumbnail: Page 
1184
    1184
  • Thumbnail: Page 
1185
    1185
  • Thumbnail: Page 
1186
    1186
  • Thumbnail: Page 
1187
    1187
  • Thumbnail: Page 
1188
    1188
  • Thumbnail: Page 
1189
    1189