The asymmetric impact of context effects on advantaged versus disadvantaged options

Despite substantial prior research regarding the effect of context on choices, uncertainty remains regarding when particular context effects will be observed. In this paper we advance a new perspective on context-dependent choices, according to which context effects are a function of the relative advantage of one option over another and of the different strategies that decision-makers evoke when making a choice. We propose that context effects resulting from addition of a third option to a two-option set are more frequently observed when the added option is relatively similar (adjacent) to the “disadvantaged” alternative (i.e., the lower-share option) in a two-option set. In a series of studies we analyze the occurrence of context effects and find support for our predictions related to asymmetric dominance and extremeness aversion.