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The impact of self‐confidence on the compromise effect
Author(s) -
Chuang ShihChieh,
Cheng YinHui,
Chang ChiaJung,
Chiang YuTing
Publication year - 2013
Publication title -
international journal of psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.75
H-Index - 62
eISSN - 1464-066X
pISSN - 0020-7594
DOI - 10.1080/00207594.2012.666553
Subject(s) - compromise , self confidence , psychology , certainty , preference , confidence interval , social psychology , purchasing , low confidence , set (abstract data type) , personality , overconfidence effect , actuarial science , economics , statistics , operations management , computer science , microeconomics , mathematics , social science , geometry , sociology , programming language
This research reports an investigation into whether the personality aspect of self‐confidence affects the compromise effect. We hypothesize that highly self‐confident people have greater certainty in making decisions and are more attracted to risk‐taking, which makes them less likely to choose the safe or middle option in a large choice set. The three studies involved are conducted using between‐ and within‐subjects experimental designs. Various product categories are used to generalize the findings. Study 1 looks at purchasing decisions and utilizes three scales of self‐confidence, risk preference, and uncertainty; it demonstrates that consumers with high self‐confidence are less likely to choose a compromise option due to high certainty in their decision‐making. Study 2 discovers that people with low self‐confidence are more likely to choose the middle option in a risky condition than in a nonrisky condition. Study 3 decomposes self‐confidence into general and specific self‐confidence, and reveals that people with low general self‐confidence and low specific self‐confidence are more likely to choose the middle option.