A phantom alternative is a choice option that looks real but is unavailable at the time a decision is made. In practice, phantoms are a common tactic in retailing (e.g. the bait in bait-and-switch selling tactics). Although consumer marketing is the primary context for this research, phantom alternatives arise in many decision applications. Classical models of individual choice assume that phantoms do not affect choice probabilities. This cross disciplinary research project investigates the effects of phantoms on changes in choice probabilities, shifts in perceptions of choice alternatives and preferences of decision criteria. The research, guided by theories of social cognition and judgment, behavioral decision making, and cognitive dissonance, investigates three types of phantoms: known, unknown and uncertain phantoms. The results from this empirical research will be instrumental to the development of a general theory of phantom effects and for adapting decision analysis procedures for choice problems involving phantom options.
