Context Dependence in Speed Dating: An Empirical Test of Relative Thinking

Context influences decision making. However, evidence on the specific underlying mechanism is scarce. Since context dependence in decision making may impact consumers, firms and political agenda setters, exploring the precise mechanism through which choices are distorted is imperative. This paper provides evidence that expanding the utility range of one choice dimension leads decision makers to attach less weight to this attribute, in line with the notion of relative thinking. Context dependence is more pronounced if evaluators are female and survives extensive robustness checks. Implications for policy are discussed.