Faculty Research at Ivy – The Attraction Effect in Crowdfunding
The decoy effect can have a substantial impact on consumer choices in digital markets. The authors find that the effect shifted preferences from a low-priced to a high-priced item by as much as 28 percent in reward-based crowdfunding. These findings are important for menu design in digital markets and can help inform artists, innovators, and creatives to make smarter, more effective reward menus to reach their fundraising goals.
Abhay Mishra is the Kingland Systems Business Analytics Faculty Fellow and associate professor of information systems and business analytics. His paper is published in Information Systems Research. See more faculty research at Ivy.