The impact of range extension on the attraction effect

Using a series of three corroborative studies, this paper reconciles the conflicting results on the relationship between range extension and the attraction effect in extant literature. Prior seminal works on the attraction effect, including those of Huber, Puto, and Payne, have not found any impact of range extension on the intensity of the attraction effect. Some explanatory models of the attraction effect in the extant literature (e.g. the value-shift model), however, predict an amplification of the attraction effect upon range extension. In this work, we resolve this conflict by showing that range extension does significantly change the preference between core alternatives and that it systematically amplifies the attraction effect both in stylized and natural settings. In doing so, this paper furthers the conceptual understanding of the attraction effect. It also contributes to the growing literature exploring the boundary conditions of the attraction effect and provides relevant managerial insights.

Automated summary

By conducting three corroborative studies, this paper reconciles the conflicting results on the relationship between range extension and the attraction effect, showing that range extension significantly changes preference between core alternatives and amplifies the attraction effect in both stylized and natural settings. This contributes to a better understanding of the attraction effect concept and provides relevant managerial insights.