Asymmetric dominance and phantom decoy effects in games

Abstract

In individual choices between alternatives x and y, the availability of a third alternative z, judged inferior to x but not to y, tends to increase preferences for x. Two experiments investigated corresponding strategic asymmetric dominance effects in games. In Experiment 1, 72 players chose strategies in six symmetric 3 × 3 games, each having one strategy dominating just one other, or in reduced 2 × 2 games constructed by deleting the dominated strategies. Asymmetrically dominated strategies, even when unavailable (phantom decoy), increased choices of the strategies that dominated them and bolstered decision confidence. In Experiment 2, 81 participants played 12 similar but asymmetric games with or without dominated strategies, and similar asymmetric dominance, phantom decoy, and confidence effects were found.