Choiceranging

Choiceranging is a term used in behavioral economics and psychology to describe the phenomenon where individuals make decisions about choices based on the perceived range of available options, rather than solely on the intrinsic value of each option. This means that the context of the choice set, or the "range" of alternatives, can significantly influence an individual's preference.

For example, if presented with three options for a product, and one option is clearly superior to the others but still not ideal, a person might choose it because it appears to be the best within the presented set. However, if a wider range of options were available, including some that were even better than the previously "superior" option, the original choice might no longer be preferred. This illustrates how the framing of the choice set can manipulate perceived value.

Choiceranging is closely related to concepts like framing effects and decoy effects. The decoy effect, in particular, demonstrates how introducing a third, less attractive option can disproportionately increase the preference for one of the other options, even if the decoy itself is not chosen. The presence of the decoy alters the perceived range and makes another option seem more appealing by comparison. Understanding choiceranging is important for fields such as marketing, policy design, and understanding consumer behavior, as it highlights the non-rational aspects of decision-making.