Moderation By Extremes: Biases in Reward Perceptions Drive Compromise Effects in Financial Bundles

We find that compromise effects are stronger when middle options bundle extreme items (e.g., half high-risk/high-reward and half low-risk/low reward stocks) rather than being composed entirely of moderate items (e.g., individual stocks moderate in both risk and reward), because the bundle-of-extremes is viewed as more potentially rewarding, but not riskier.


Peggy Liu, Cait Lamberton, and Kelly Haws (2016) ,"Moderation By Extremes: Biases in Reward Perceptions Drive Compromise Effects in Financial Bundles ", in NA - Advances in Consumer Research Volume 44, eds. Page Moreau, Stefano Puntoni, and , Duluth, MN : Association for Consumer Research, Pages: 537-538.


Peggy Liu, University of Pittsburgh, USA
Cait Lamberton, University of Pittsburgh, USA
Kelly Haws, Vanderbilt University, USA


NA - Advances in Consumer Research Volume 44 | 2016

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