It has recently been suggested that a number of experimental findings of context effects in choice settings can be explained by the ability of subjects to draw choice-relevant inferences from the stimuli. We aim to measure the importance of this explanation. To do so, inferences are assessed in...

If utility (net of price) varies by consumption occasion, the consideration set of a rational consumer will represent trade-offs between decision costs and the incremental benefits of choosing from a larger set of brands. If evaluating a brand decreases bias and uncertainty in perceived utility,...

This article explores the possibility that consumers use market data to make inferences about product utilities. The argument is made by means of an example based on the "compromise effect" found in extant experimental data. This phenomenon is generally looked at as a manifestation of deviations...