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PSYCHOLOGICAL SCIENCE

Research Report
CHOICE UNDER CONFLICT:
The Dynamics of Deferred Decision
Amos Tversky' and Eldar Shafir2
'Statford University and 'Princeton University

Abstract-Choice often produces con- nal theory of choice does not deny the propose thai this tendency holds even
flict. This notion, however. plays no role existence of conflict; it merely assumes when the former choice set is at least as
in classical decision theory, in which that conflict has no direct bearing on de- good as the latier. This hypothesis is
each alternative is assigned a vahie, and cision. In contrast, we argue that the tested in our first study. In the second
the decision maker selects from every presence of conflict not only influences study, we investigate the hypothesis that
choice set the option with the highest the psychological state of the decision adding a new alternative t o a given
value. We contrast this principle of valiie maker, but can also affect the actual choice set can increase conflict and en-
maximization with the hypothesis that choice. hance the tendency to defer decision,
the option to delay choice or seek new When one option is better than an- contrary to value maximization.
alternatives is more likely to be selected other in all essential respects, there is no
when conflict is high than when it is low. conflict and choice is easy. However, STUDY 1: SEARCH
This hypothesis is supported by several when each option has significant advan- FOR OPTIONS
studies showing th'at the tendency to de- tages and disadvantages, people often
fer decision, searc!i for new alternatives, experience conflict that makes choice In many situations, t h e decision
or choose the defaiilt option can be in- aversive and compels them to delay de- maker can choose among the available
creased when the offered set is enlarged cision and seek additional information or options or search for additional alterna-
or improved, contrary to the principle of options. Thus, people are more likely to tives. For example, a person who wishes
value maximization. defer choice when conflict is high than to buy a used car may settle for a car that
when it is low. As will be shown below, is currently available or continue search-
this hypothesis is inconsistent with value ing for additional models. Seeking new
The experience of conflict is the price maximization. alternatives usually requires additional
one pays for the freedom to choose. Although conflict has played an im- time and effort; it may also involve the
Conflict arises because a person does not portant role in psychological analyses of risk of losing some of the previously
always know how to trade off costs decision making (see, e.g., Coombs & available options. In the present study,
against benefits, risk against value, and Avrunin, 1988; Festinger, 1964; Janis & which extends earlier unpublished work
immediate satisfaction against future dis- Mann, 1977; Lewin, 1935; Miller, 1944), by Shmuel Sattath, we investigated the
comfort. As a consequence, it is often it does not have a standard formal defi- effect of conflict among available options
difficult to make important decisions, nition, nor is there a generally accepted on the decision to search for additional
such as family planning, as well as insig- procedure for measuring conflict. Never- options. (For other work on deferred
nificant decisions, such as what clothes theless, it is sometimes possible to ma- decision, see, e.g., Busemeyer & Rapo-
to pack for a weekend trip, The resolu- nipulate conflict by varying the relative port, 1988, and references therein.) Sub-
tion of conflict is complicated by the attractiveness of the available options. jects were presented with pairs of op-
presence of uncertainty about the conse- Consider a situation in which a person tions, such as bets varying in probability
quences of one's actions, and it is further can select one of two alternatives, de- and payoff, or student apartments vary-
hindered by the anticipation of disso- noted x and y , or defer the decision and ing in monthly rent and distance from
nance and regret. maintain the status quo. The latter op- campus. On each trial, the subject could
Conflict plays no role in the rational tion may allow the decision maker to choose one of the two options or, in-
theory of choice. In this theory, each op- consider the problem further, to seek rel- stead, request an additional option, at
tion x has a value v(x) such that, given an evant information, and perhaps even to some cost.
offered set, the decision maker selects discover new alternatives. FrGm the Figure 1 illustrates the design of this
the option with the highest value. This standpoint of value maximization, defer- experiment. The four options displayed
principle of value maximization under- ring choice is just another option to be vary on two quantitative attributes, or
lies the standard analysis of decision selected whenever its (subjective) value dimensions. Assume that the attributes
making under uncertainty and the classi- exceeds that of the available alterna- are labeled so that higher values are pre-
cal theory of riskless choice, which are tives. In contrast, we propose that peo- ferred t o lower values. Hence, the
widely used in economics, political the- ple are more likely to defer decision choice between x and x' and the choice
ory, and management science. The ratio- when the choice between x and y is dif- between y and y' involve no conflict be-
I ficult (e.g., when the alternatives are cause the umprimed options dominate
about equally attractive but not identi- the respective primed options (i.e., they
Address correspondence to Amos Tver-
sky, Department of Psychology, Building 420, cal) than when the choice is easy (e.g.. are superior on both dimensions). In
Stanford University, Stanford, CA 94305. when x dominates y ) . Furthermore, we contrast, the choices between x and y

358 Copyright 0 1992 American Psychological Society VOL. 3, NO. 6, NOVEMBER 1992
PSYCHOLOGICAL SCIENCE

Amos Tversky and Eldar-Shafir

natives or pay to obtain an additional al- room setting. Subjects first reviewed the
ternative, selected at random from a entire set of 12 gambles to familiarize
known set. Let s denote the option of themselves with the available options.
seeking a new alternative. According to They were then given the following in-
value maximization, the decision maker structions.
8
N

f
should select s if and only if its expected
(subjective) value exceeds that of the Imagine that you are offered a choice between
best alternative currently available. If the following two gambles:
this principle is applied to the alterna- x. 65% chance to win $IS
tives displayed in Figure 1, it follows y. 30% chance to win $35
readily that if v(s) exceeds both v(x) and You can either select one of these gambles or
vb), it must also exceed v(x') and vo'), you can pay $1 to add one more gamble to the
choice set. The added gamble will be selected
since v(x) > v(x') and v b ) > vb'). Con-
at random from the list you reviewed.
sequently, value maximization implies
that if s is selected from {s, x. y}, it must
Fig. 1. A graphic illustration of the op- also be selected from {s, x, x'}, as well as Subjects were asked to indicate whether
tions in Experiment 1. they wanted to add another gamble or
from Is, Y , y'}.
and between x' and y' involve conflict Let P(s;x, y) denote the percentage of select between x and y. Subjects then
because the xs are better on the first di- subjects who chose s from the choice set chose their preferred gamble from the re-
mension and the y s are better on the sec- {s, x, y}. It follows readily from value sulting sets (with or without the added
ond. maximization that option). The participants were instructed
It is noteworthy that the degree of to treat each problem separately; they
conflict associated with a given choice is :were told that the gambles they chose
not determined by the overall value of 'would be played out and that their pay-
the options. Consider the following risky offs would be proportional to the amount
According to value maximization, the of money they earned minus the fees
prospects: x = (65% to win $15), x' = percentage of subjects who seek an ad-
(65% to win $14), and y = (30% to win they paid for the added gambles. Sub-
ditional alternative cannot be greater in jects' earnings ranged from $3 to $7, with
$35). The choice between x and x' in- the conflict condition in which x and y
volves no conflict because x dominates an average of $5.
are offered than in either dominance con- Following the choice among gambles,
x', but the choice between x and y does dition, when x and x', or y and y', are
involve conflict because x offers a better subjects were presented with a parallel
offered.' design involving choice among hypothet-
chance to win whereas y offers a larger Considerations of conflict suggest the
prize. Suppose you are indifferent be- ical student apartments. As in the first
opposite prediction: The decision maker experiment, subjects reviewed a master
tween x' and y. These options then have is more likely to request an additional
the same subjective value, yet they com- list of 12 apartments to familiarize them-
alternative in the conflict condition, selves with the available options. The in-
pare differently with x. While the choice when the decision is difficult, than in the
between x' and x is easy, the choice be- structions read as follows.
dominance condition, when the decision
tween y and x is not. Hence, the degree is easy. As a consequence, we predict
of conflict associated with a choice be- Imagine that you face a choice between two
tween options depends on the relation apartments with the following characteristics:
x. $290 a month. 25 minutes from campus
among their attributes, not simply on y. $350 a month, 7 minutes from campus
their overall values. A well-known illus- Both have one bedroom and a kitchenette.
tration of this point is due to L.J. Savage contrary to value maximization.
You can choose now between the two apart-
(see Luce & Suppes, 1965, p. 334; Tver- To test the opposing predictions, we ments or you can continue to search for apart-
sky, 1972). Imagine a choice between a constructed three sets of four gambles, ments (to be selected at random from the list
trip to Paris, a trip to Rome, and a trip to as in Figure 1. Four pairs of gambles of you reviewed). In that case, there is some risk
Rome plus a complimentary drink, de- the form Ix. YI,{x', y'l, {x. x'), and b,'~') of losing one or both of the apartments you
noted Rome-plus. Assuming you find were constructed for each set. The order have found.
Paris and Rome equally attractive, these of the pairs was randomized, and every
will nonetheless compare differently subject received one pair from each set. Subjects were asked to indicate whether
with Rome-plus. The choice between The subjects in this experiment (N = they wanted to add another apartment or
Rome and Rome-plus is easy because it 224) were recruited by ads in the Univer- select between the available apartments.
involves no conflict, but the choice be- sity of Oregon newspaper. The problems The percentages of s choices are sum-
tween Pans and Rome-plus may be dif- were presented in written form in a class- marized in Table 1. Because there were
ficult since the conflict between the cit- no systematic differences among the
ies is not eliminated by the introduction 1. If all the alternatives are taken from the sets, the data were pooled across all
of a complimentary drink. same finite pool, the expected value of s is pairs. In accord with value maximiza-
Consider a situation in which a person strictly greater under dominance {x. x'} than tion, people searched more when both
can choose between two available alter- under conflict {x, y}. options were weak than when they were

VOL. 3, NO. 6, NOVEMBER 1992 359


PSYCHOLOGICAL SCIENCE

Choice Under Conflict

below the list price. Do you


Table 1. Percentage of responses seeking an added alternative (s) y. buy the SONY player 66%
under dominance and iotder conflict z. wait until you learn more about the various
models 34%
Dominance Conflict
A second group of subjects (N = 124)
Options P(s; x, x‘) P(s; y . Y ’ ) P(s; x, Y ) P(s; x’, Y ’ ) was presented with the following prob-
lem.
Gambles 28 32 46 64
Apartments 48 53 62 85
Suppose you are considering buying a com-
pact disk (CD) player, and have not yet de-
cided what model to buy. You pass by a store
strong: P(s; x’, y ’ ) exceeded P(s; x. y ) for chooses y from the set Cy. z} will not that is having a one-day clearance sale. They
both gambles and apartments (p < .01). choose z from the set {x, y . z}. This fol- offer a popular SONY player for just $99, and
Contrary to the prediction of value max- lows readily from value maximization: a top-of-the-line AIWA player for just $159,
imization, however, P(s; x, y ) exceeded The former preference implies v(y) > both well below the list price. Do you
P(s; x, x’) and P(s; y , y ’ ) in both cases (p v(z), hence z cannot be chosen from any x. buy the AIWA player 27%
C .05). In other words, people searched offered set that includes y . In particular, y. buy the SONY player 27%
more in the conflict than in the domi- a decision maker who prefers y over the z. wait until you learn more about the various
nance condition. option to defer the choice, denoted z, models 46%
This result.show: that the search for should not prefer to defer the choice
additional alternatives is determined not when both y and x are available. Let P(z; y ) denote the percentage of
only by the value of the best available Contrary to the prediction of value subjects who chose z from the set 01, z},
option, as implied by value maximiza- maximization, we propose that i f x and y and let P(z; y , x) denote the percentage of
tion; it also depends on the difficulty of are about equally attractive (but not subjects who chose z from the set {x, y ,
choosing among the options under con- identical), the addition of x to the choice z}. It is easy to show that value maximi-
sideration. When the choice involves set Cy, z} can increase conflict and en- zation implies P(z; y ) 3 P(z; y , x). This
conflict, people are more likely to seek a hance the tendency to defer the choice. condition, called regularity, states that
new option than when the choice is easy, A case in point was described to us by the “market share” of any option cannot
despite the fact that the best option in the Thomas Schelling, who some time ago be increased by enlarging the offered set.
conflict condition is at least as good as had decided to buy an encyclopedia for The data above violate regularity since
the best option in the dominance condi- his children. To his chagrin, he discov- P(defer; SONY) < P(defer; SONY,
tion. Recall that the subjects reviewed ered that two encyclopedias were avail- AIWA).
the pool of options from which the added able in the bookstore. Although either The results indicate that the addition
alternatives were randomly selected. one would have been satisfactory, he of a second CD player increases the ten-
Hence, even if the subjects did not re- found it difficult to choose between the dency to delay the purchase (p c .05).
member all the options exactly, they had two, and as a result bought neither. When the SONY alone is available; it
no reason to expect that the added op- The present analysis suggests that the looks like a “good buy,” and the same
tion would be better in the conflict than tendency t o defer choice can be in- may be true for the AIWA. But when
in the dominance condition. Finally, creased by adding an alternative that en- both models are available, the decision
note that the results of the present study hances conflict, whereas value maximi- maker faces a conflict between the better
cannot be explained by a satisficing zation implies that no currently available priced SONY and the higher quality
model according to which the decision option (including the option to defer de- AIWA. The difficulty of resolving this
maker selects an option that exceeds cision) can be made more popular by en- conflict, we suggest, leads people to de-
some specifted criterion. Because there larging the offered set. The contrasting fer the decision and put off the purchase.
is no reason to assume that the accept- predictions are tested in the following se- Two alternative explanations of this
ability criterion is higher in the conflict ries of problems. The subjects in the pattern of preference come to mind.
than in the dominance condition, satis- present study were students at Princeton First, it could be argued that enlarging
ficing does not account for the greater and Stanford universities. Each student the offered set increases the tendency to
demand for new options when conflict is answered a single question. One group of defer the decision, regardless of whether
high than when it is low. subjects (N = 121) was presented with conflict is increased. To test this hypoth-
the following problem. The percentage esis, we presented another group of sub-
of respondents who chose each option is jects (N = 62) with the above problem
STUDY 2: DEFERRED DECISION given on the right. except that the top-of-the-line AIWA
player was replaced by a Iess attractive
The major testable implication of Suppose you are considering buying a com- CD player. In this condition, there was
value maximization is that a nonpre- pact disk (CD) player, and have not yet de- little or no conflict between the SONY
ferred option cannot become preferred cided what model to buy. You pass by a store and the inferior player; we therefore ex-
when new options are added to the of- that is having a one-day clearance sale. They pected no increase in the tendency to de-
rered set. Thus, a decision maker who offer a popular SONY player forjust $99, well fer decision. Indeed, no one chose the

360 VOL. 3, NO. 6, NOVEMBER 1992


PSYCHOLOGICAL SCIENCE

Amos Tversky and Eldar Shafir

less attractive product, and only 24% payment for a prize of greater value. ence as it is puzzling for decision theo-
chose to forgo the sale, as compared However, when a second alternative was rists.
with 46% in the conflict condition. These added, most subjects chose to retain the
observations indicate that the increased default option, contrary to regularity (p Acknowledgments-This work was sup-
tendency to delay choice cannot be ex- < .05). (For other violations of regularity ported by Grant No. 89-006.2 from the Air
plained by the mere addition of options: and hence of value maximization, see Force Office of Scientific Research to the
The increase does not occur when the Huber, Payne, & Puto, 1982, and Simon- first author, by Grant No. 1-R29-
MH46885 from the National Institute of
added options produce no conflict. son & Tversky, 1992.) Mental Health to the second author, and
Another interpretation of the ob- The present experiment, involving by a grant from the Hewlett Foundation to
served violation of regularity is that the pens, differs from the preceding experi- the Stanford Center on Conflict and Ne-
subjects have inferred from the introduc- ment, involving CD players, in two re- gotiation.
tion of the AIWA that other high-quality spects. First, the choice was real rather
products may be on sale, causing them to than hypothetical. Second, there was no
delay the choice and engage in further opportunity to delay the choice and ob- REFERENCES
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the opportunity to exchange the default condition, is as common in daily experi- (RECEIVED10/7/91; ACCEPTED1/24/92) '

VOL. 3, NO. 6, NOVEMBER 1992 361

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