When Option Order Primacy Disappears: The Role of Presentation Order of Loss and Gain
(A2024-118141)

AUTHORS

Yongkun Liu, Bocconi University; Kurt Munz, Bocconi University

ABSTRACT

An option order primacy effect, where consumers tend to select earlier presented options than later ones, has been established in diverse contexts such as food, beverages, and hospitality. This research extends this phenomenon to the domain of financial decision-making, highlighting its robust nature. Recognizing the importance of aiding consumers in making well-informed choices, we propose a pragmatic intervention to counteract the option order primacy effect in financial decisions. By reversing the order in which information about losses and gains is disclosed for each option, the primacy effect disappears. This study also delves into the potential mechanisms underlying this novel intervention, considering attention and fluency. In a series of experiments, neither process was unambiguously supported. These findings highlight the enduring consistency of the option order primacy effect across domains and underscore the distinctive and effective nature of our new intervention.