Consumers' choices are typically influenced by the choice context in ways that standard
models cannot explain. We provide a concise explanation of the attraction, compromise and
similarity effects. The model, Multi-Attribute Decision by Sampling (MADS), posits that the
evaluation of a choice option is based on its relative position in the market distribution as first
inferred and then sampled by the decision-maker. The inferred market distribution is
assumed to be systematically influenced by the choice options. The value of a choice option …