We present a theory of context-dependent risk preferences under which within-state payoff comparisons and regret aversion shape decisions. Defining the attraction and compromise effect in reference to a state-space-based description of the choice problem, we show that our theory can account for...

We present a theory of context-dependent risk preferences under which within-state payoff comparisons and regret aversion shape decisions. Defining the attraction and compromise effect in reference to a state-space-based description of the choice problem, we show that our theory can account for...

Research on context effects shows that the composition of choice sets and choice framing strongly influences consumer decision-making. Researchers have identified various context effect types and provide insight into their antecedents, consequences, and mechanisms of action. However, the...

Research on context effects shows that the composition of choice sets and choice framing strongly influences consumer decision-making. Researchers have identified various context effect types and provide insight into their antecedents, consequences, and mechanisms of action. However, the...