Exploring the choice landscape: Anchoring and framing effects on search behavior in complex choices

Abstract

Complex choices entail consideration of multiple variables characterized by non-linear interactions. Prior research into such choices neglects two categories of major choice determinants: heuristics and biases. Our research integrates such behavioral determinants of decision making into the study of complex choices. We approach this challenge using a new experimental paradigm in which participants tune on-screen dials representing choice variables. Through their tuning efforts, participants can discover information about the choice space. Specifically, this paradigm allows us to document how anchoring and framing effects impact complex choice processes. We find that loss framing incites participants to expend more effort exploring choice variables before selecting an option. An aspirational anchor, on the other hand, correlates with decreased search effort. Additionally, when participants did not have an aspirational anchor, the data suggest they anchor on prior experience.