Reversal of the Compromise Effect: the Case of Negative Goods

Nükhet Agar, Koc University, Turkey
Baler Bilgin, Koc University, Turkey
We demonstrate that compromise effect may be one manifestation of the more overarching hedonic maximization principle, first put forth by Thaler (1985). Accordingly, we find a reversal for the effect in negative domains, where middle options (i.e., segregated losses) provide higher disutility to consumers than extreme options (i.e., integrated losses).
[ to cite ]:
Nükhet Agar and Baler Bilgin (2015) ,"Reversal of the Compromise Effect: the Case of Negative Goods", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 775-775.