The co-existence of the compromise and reversed compromise effects

Abstract Three studies (n = 964, CloudResearch) are presented that clarify the conditions that determine the direction of the compromise effect in decisions under risk. Study 1 focuses on repeated decisions and reveals a reversed compromise effect, a tendency to avoid the middle ground, both before and after obtaining feedback. Study 2 examines one-shot decisions from description and documents the original compromise effect when the compromise is the safest option, but not in other cases. It also suggests that the direction and the magnitude of the compromise effect is sensitive to the expectation of a repetitive choice and individual differences. Study 3 explores repeated decisions in a task which triggered the original compromise effect from description, and shows a quick reversal of this effect as participants gain experience.