Context effects on group-based employee selection decisions

The decoy effect occurs when preferences between two alternatives reverse as a result of the manipulation of a third alternative (i.e., a decoy) such that it is dominated by only one of the two original alternatives. Previous research has demonstrated this effect in employee selection decisions, but only when decisions were made by individuals. The present investigation was designed to test the generalizability of the phenomenon to decisions made by groups, and to determine the influence of process and outcome accountability on the decoy effect. Results showed that the overall decoy effect held for both individual and group decisions. However, for both individuals and groups, the decoy effect held only when decision makers knew they would have to justify their decision processes.