Can the decoy effect increase cooperation in networks? An experiment

2025-09-17

AI Summary

This study investigates whether the decoy effect—specifically the attraction effect—can enhance cooperative behavior in social networks. Using controlled laboratory experiments, we systematically introduced dominated, inferior decoy options within networked environments featuring varied topologies, and compared cooperation decisions across individual versus networked contexts. Results demonstrate that decoys significantly increase the selection rate of the target cooperative option, with the effect being especially pronounced in early decisions and persisting over time in network settings. Crucially, a decision-maker’s strategic network position—particularly centrality—moderates the magnitude of this effect. This work constitutes the first extension of the decoy effect to multi-agent, network-embedded cooperation scenarios. It reveals the interplay between cognitive bias and network structure, thereby advancing behavioral economics by providing novel empirical evidence and delineating theoretical boundaries for its application in complex social systems.

Technology Category

Game Theory and Economic Paradigms: Cooperative Game TheoryMultiagent Systems: Mechanism DesignCognitive Modeling & Cognitive Systems: Social Cognition And Interaction

Application Category

Economics, Online Markets and Human Computation: Social networks and social learningSocial Networks and Social Media: Fairness and bias in social network and social media analysisResponsible Web: Human-perceived consequences of algorithmic deployment on the web

Abstract

This paper investigates whether the decoy effect - specifically the attraction effect - can foster cooperation in social networks. In a lab experiment, we show that introducing a dominated option increases the selection of the target choice, especially in early decisions. The effect is stronger in individual settings but persists in networks despite free-riding incentives, with variation depending on the decision-maker's strategic position.

Problem

• Investigating if decoy effect increases network cooperation
• Testing attraction effect on target choice selection
• Examining decoy impact across different strategic positions

Innovation

• Decoy effect increases cooperation in networks
• Dominated option boosts target choice selection
• Effect varies with decision-maker's strategic position