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RELATIVITY OF CHOICE
Nick ChaterBehavioural Science GroupWarwick Business School
OVERVIEW
1. EVERYTHING IS RELATIVE
2. COMPARISON AND CONSUMPTION
EVERYTHING IS RELATIVE
WHICH IS BRIGHTER, A OR B?
WHICH IS BRIGHTER, A OR B?
WHICH IS BRIGHTER, A OR B?
A UNIFORM GREY STRIP?
A UNIFORM GREY STRIP?
A UNIFORM GREY STRIP?
A UNIFORM GREY STRIP?
COMPARISON AND CONSUMPTION
PAYING VERY DIFFERENT AMOUNTS FOR VERY SIMILAR THINGS...
£2 per cup
5p per cup
EVERYTHING IS RELATIVE...
How much would you pay for 1 h of sitting (more) comfortably?
Or 4h 50m of sitting (more) comfortably?
EVERYTHING IS RELATIVE...
2nd class: £164.10Business: £325.10
Second: £108.30First: £229.90
How much would you pay for 1 h of sitting (more) comfortably?
Or 4h 50m of sitting (more) comfortably?
London to Edinburgh, return
In each case, double the basic price: comparison in action
SO RANGE OF OPTIONS IS CRUCIAL
Sharpe, K. M., Staelin, R., & Huber, J. (2008). Using extremeness aversion to fight obesity: Policy implications of context dependent demand. Journal of Consumer Research, 35, 406-422.
Choice of Drink Affected by Options
Some results:
“low” range “high” range
15% more consumption!
IF ALL WE HAVE IS COMPARISON...
• Perhaps the most powerful source of comparison is other people
• E.g., how we perceive our own weight
Wood and Brown (in preparation)
WE EVALUATE OURSELVES BY COMPARISON WITH OTHERS
• People estimate their own weight, BMI etc• What predicts their estimates?• Not actual BMI• But rank BMI measured against friends
EVALUATION BY LOCAL COMPARISON
• Judgements of own alcohol consumption (weight, income) made by:(a) Construct mental sample (mostly friends, colleagues)
(b) Count who weighs, drinks earn less than me?(c) Count who weighs, drinks earn more than me?(d) Compare the two numbers
• This is the “Decision-by-Sampling” model (Stewart, Chater, & Brown, Cognitive Psychology, 2006)
IMPLICATION: THE SAMPLE IS CRUCIAL
IMPLICATION: THE SAMPLE IS CRUCIAL
SUMMARY• EVERYTHING IS RELATIVE
• From perception onwards
• COMPARISON AND CONSUMPTION
• Eliciting the right comparison set is crucial
• Other products
• Own past experiences
• Other people
• And this is a crucial objective of marketing, advertising, and
behaviour change
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