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Compromise Effect
What Is the Compromise Effect?
The Quick Answer
In Critical Thinking, the compromise effect is the tendency to avoid an extreme choice and adopt a central position.The Compromise Effect: The Power of Middle Options
The compromise effect, also known as the attraction effect or the extremeness aversion, is a cognitive bias that influences our decision-making when faced with multiple options. This bias suggests that when presented with choices, we tend to prefer options that are perceived as a middle ground or compromise between extremes. The compromise effect often leads us to select a middle option even when it may not align with our true preferences.
Imagine you are shopping for a new laptop and you come across three options:
Option A: A high-performance laptop with all the latest features priced at $2,000.
Option B: A budget-friendly laptop with basic specifications priced at $800.
Option C: A mid-range laptop with decent performance and moderate features priced at $1,200.
Upon considering the options, you find yourself leaning towards Option C. Even though Option A offers superior performance and Option B is more affordable, the compromise effect influences your decision. Option C appears as the "compromise" choice, offering a balance between the two extremes of performance and price. You perceive it as a safer and more reasonable option, even if it may not perfectly match your requirements.
The compromise effect has important implications in various domains, including consumer behaviour, marketing, and negotiations. Companies often strategically introduce a compromise option to influence consumer choices. By presenting a middle option that appears reasonable in comparison to extreme alternatives, they increase the likelihood of that option being selected.In negotiations, the compromise effect can be utilized to steer the outcome towards a desired middle ground. By introducing extreme proposals that are less favourable to the opposing party, negotiators can make a middle option appear more appealing and increase the likelihood of agreement.
It is important to be aware of the compromise effect and its potential influence on decision-making. While the middle option may seem like a safe and balanced choice, it is essential to consider individual preferences, needs, and objectives. Evaluating options based on their inherent value rather than their position on a spectrum can lead to more informed and satisfying decisions.

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.Critical Thinking Test
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