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Translated Attributes as Choice Architecture: Aligning Objectives and Choices Through Decision Signposts

Author

Listed:
  • Christoph Ungemach

    (TUM School of Management, Technische Universität München, 80333 München, Germany)

  • Adrian R. Camilleri

    (RMIT University, Melbourne, Victoria 3000, Australia)

  • Eric J. Johnson

    (Columbia Business School, Columbia University, New York, New York 10027)

  • Richard P. Larrick

    (Fuqua School of Business, Duke University, Durham, North Carolina 27708)

  • Elke U. Weber

    (Princeton University, Princeton, New Jersey 08544)

Abstract

Every attribute can be expressed in multiple ways. For example, car fuel economy can be expressed as fuel efficiency (“miles per gallon”), fuel cost in dollars, or tons of greenhouse gases emitted. Each expression, or “translation,” highlights a different aspect of the same attribute. We describe a new mechanism whereby translated attributes can serve as decision “signposts” because they (1) activate otherwise dormant objectives, such as proenvironmental values and goals, and (2) direct the person toward the option that best achieves the activated objective. Across three experiments, we provide evidence for the occurrence of such signpost effects as well as the underlying psychological mechanism. We demonstrate that expressing an attribute such as fuel economy in terms of multiple translations can increase preference for the option that is better aligned with objectives congruent with this attribute (e.g., the more fuel-efficient car for those with proenvironmental attitudes), even when the new information is derivable from other known attributes. We discuss how using translated attributes appropriately can help align a person’s choices with their personal objectives.

Suggested Citation

  • Christoph Ungemach & Adrian R. Camilleri & Eric J. Johnson & Richard P. Larrick & Elke U. Weber, 2018. "Translated Attributes as Choice Architecture: Aligning Objectives and Choices Through Decision Signposts," Management Science, INFORMS, vol. 64(5), pages 2445-2459, May.
  • Handle: RePEc:inm:ormnsc:v:64:y:2018:i:5:p:2445-2459
    DOI: mnsc.2016.2703
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    2. Anders Dugstad & Kristine Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2020. "Scope elasticity and economic significance in discrete choice experiments," Discussion Papers 942, Statistics Norway, Research Department.
    3. Mario Herberz & Tobias Brosch & Ulf J. J. Hahnel, 2020. "Kilo what? Default units increase value sensitivity in joint evaluations of energy efficiency," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(6), pages 972-988, November.
    4. James Alm & Lilith Burgstaller & Arrita Domi & Amanda März & Matthias Kasper, 2023. "Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance," Economies, MDPI, vol. 11(9), pages 1-22, September.
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    6. Anders Dugstad & Kristine M. Grimsrud & Gorm Kipperberg & Henrik Lindhjem & Ståle Navrud, 2021. "Scope Elasticity of Willingness to pay in Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(1), pages 21-57, September.
    7. Lagomarsino, Maria & van der Kam, Mart & Parra, David & Hahnel, Ulf J.J., 2022. "Do I need to charge right now? Tailored choice architecture design can increase preferences for electric vehicle smart charging," Energy Policy, Elsevier, vol. 162(C).
    8. Ahi, Jülide Ceren & Aanesen, Margrethe & Kipperberg, Gorm, 2023. "Testing the sensitivity of stated environmental preferences to variations in choice architecture," Ecological Economics, Elsevier, vol. 205(C).

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