LEEM Seminar at ISEM (Room SCI)

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Attraction Effect on conversion rate in airlines booking

20-02-2019 - 12h00 à 14h00 - Salle SCI - ISEM

Title: Attraction Effect on conversion rate in airlines booking. [Presentation of the experimental design.]

Authors: Ismaël Rafaï, Zakaria Babutsidze, Nobuyuki Hanaki

Abstract: Introduced by Huber, Payne and Puto (1982, Journal of Consumer Research), the attraction effect consists in the increase of the choice probability of an alternative (the target) caused by the introduction in the choice set of a new alternative (the decoy), which is asymmetrically dominated by the target. Attraction effect is a major violation of one of the most basic axiom of rational choice theory (i.e. the regularity hypothesis) and has received a great interest from both theorists and practitioners.

Our study aims to replicate the attraction effect and to investigate the impact of asymmetrically dominated alternatives on conversation rate (the probability to choose one of the alternatives) in airlines booking.

For this purpose, we designed a set of experiments with similar incentive structure as in airlines booking (e.g. time/money trade-off), where we manipulate the number of alternatives, the number of (vertical and horizontal) characteristics and how alternatives are disclosed.

Before conducting the experiments, we would like to present and have your valuable feedback on the general experimental design, as well as a survey we want to conduct, to calibrate the experimental parameters.

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