Theories of Context Effects in Multialternative,Multiattribute Choice

Abstract

Over the past several decades, researchers in psychology, neuroscience, marketing, and economics have been keen to understand context effects in multialternative, multiattribute decision making. These effects occur when choices among existing alternatives are altered by the addition of a new alternative to the choice set. The effects violate classic decision theories and have led to the development of computational and mathematical models that explain how underlying cognitive and neural mechanisms give rise to the effects. This article reviews dynamic models of these effects, comparing mechanisms across models. Most models of context effects incorporate an attention mechanism, which suggests that attention plays an important role in multialternative, multiattribute decision making. I conclude by discussing recent empirical studies of attention and context effects and hypothesize that changes in attention could be responsible for recently observed reversals in context effects.