“Revisiting the Decoy Effect under Attribute Transparency: Evidence from Digital Learning Platforms”

Abstract

This research paper examines the decoy effect on the choice of online courses when the course factors are displayed transparently over online learning platforms. With the behavioral decision-making theory, the study will analyze how consumers react to transparent course information in an online learning setting. The survey design was experimental with two questionnaires; Questionnaire X showed the respondents the target courses and the competitor courses; Questionnaire Y added a decoy choice. The sample population of 217 university students in Pakistan was used to gather data. The exact test and Chi-square were used to compare the difference in choice behavior under conditions and measure the association between demographic variables (age and employment status) and decision outcome. The findings show no decoy effect when the course features are specified well, meaning that the attribute transparency is less prone to manipulation of choices. In addition, age and employment status did not play a big role in determining the direction of decisions. This research broadens the decoy effect literature to a less-researched area of consumption by targeting online courses presented via digital learning platforms. The results have significant consumer policy implications by demonstrating how information disclosure can help to improve rational decision-making and consumer protection in digital markets.