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Compromise Effect
What Is the Compromise Effect?
In Critical Thinking, the Compromise Effect is the tendency to avoid an extreme choice and adopt a central position.
Easy Definition of the Compromise Effect
Don't always go for "the one in the middle" to avoid a decision. If you do, you've been influenced by the Compromise Effect.
Academic Definition of the Compromise Effect
When choosing something, the Compromise Effect is the tendency to avoid an extreme choice. Avoiding an extreme choice is often due to the common perception that extremes attract risk. As the middle ground feels safer, decisions that exclude extremes are made far more readily.
An Example of the Compromise Effect
À la carte menu or just a couple of choices?

Obviously, experience will tell a restaurateur how to fine-tune this idea to the local demographic. For example, putting the highest mark-up on the second cheapest bottle of wine might work in some areas, whereas putting it on the second most expensive might work in others. Whatever the environment dictates, putting high mark-ups on the cheapest or the most expensive choices is unlikely to be as profitable because the Compromise Effect is so entrenched in us all, and people will avoid extreme choices.
A Practical Application for the Compromise Effect
Fleece the Inbetweeners

Now, be aware that this mass herding towards the middle ground won't happen if the prices are similar. You have to create extremes.
Let's imagine you sell widgets. At the wholesalers, Widget A costs £3, Widget B costs £4, and Widget C costs £5. You could just whack a £2 mark-up on each and put them in your shop. But that is unlikely to herd people to what you want to sell them. The trick is to optimise the selection for herding. Do something like this:
- Widget A: £5
- Widget B: £8
- Widget C: £13
Summary of Compromise Effect
If you think someone is taking the easy option by avoiding extreme choices, tell them they have succumbed to the Compromise Effect and selected what they perceive to be a safe option.- Do you disagree with something on this page?
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