Less-Is-Better Effect

The less-is-better effect (not to be confused the concept of 'less-is-more') indicates a reversal of preference when a lesser alternative to a proposition is preferred over a larger alternative when the two are compared separately. This counterintuitive term was proposed by Christopher Hsee after noting odd things such as a smaller size gift of intact dishware was more valued than a larger gift that might contain some broken pieces or that a less expensive gift of a scarf might be more valued than a more expensive gift of a coat.

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