Forthcoming publication in Games and Economic Behaviour

"The attraction effect and its explanations" by Geoffrey Castillo has been accepted for publication in Games and Economic Behaviour

The paper can be found here.

The attraction effect violates choice consistency, one of the central assumptions of economics. I present a risky choice experiment to test it and disentangle some of its explanations. I find the attraction effect, but in a smaller magnitude than previously thought. I uncover a ‘range effect’ that shows that people weight more attributes whose range increases. I also show that the aggregate results hide considerable heterogeneity between subjects.