Distinction bias

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The distinction bias was advanced by Hsee and Zhang (2004) as an explanation for differences in evaluations of options between joint evaluation mode and separate evaluation mode. Evaluation mode is a contextual feature in decision making; joint evaluation mode is when options are evaluated simultaneously, and separate evaluation mode is when each option is evaluated in isolation (e.g., Hsee, 1998; Hsee & Leclerc, 1998). Research shows that evaluation mode affects the evaluation of options, such that options presented simultaneously are evaluated differently than these same options presented separately.

Hsee and Zhang (2004) offered a number of potential explanations for this change in preferences from joint evaluation to separate evaluation, including the distinction bias. The distinction bias suggests that comparing two options (as we do in joint evaluation) makes salient even small differences between options. In other words, viewing options simultaneously makes them seem dissimilar, compared to viewing and evaluating each in isolation.

Understanding the differences between joint evaluation and separate evaluation is important because we often form preferences and make decisions by comparing options, but we typically experience options in isolation. This results in a mismatch in which the best decision in the choice context may not provide the best experience. For example, when televisions are displayed next to each other on the sales floor, the difference in quality between two very similar, high-quality televisions may appear great. A consumer may pay a much higher price for the higher-quality television, even though the difference in quality is imperceptible when the televisions are viewed in isolation. Because the consumer will likely be watching only one television at a time, the lower-cost television would have provided a better experience -- similar-quality viewing at a lower cost.

[edit] References

  • Hsee, C. K. (1998). Less is better: When low-value options are valued more highly than high-value options. Journal of Behavioral Decision Making, 11(2), 107-121.
  • Hsee, C. K., & Leclerc, F. (1998). Will products look more attractive when presented separately or together? The Journal of Consumer Research, 25, 175-186.
  • Hsee, C. K., & Zhang, J. (2004). Distinction bias: Misprediction and mischoice due to joint evaluation. Journal of Personality and Social Psychology, 86(5), 680-695.