Choice set expansion and dual-domain loss aversion in food delivery platforms: Evidence from price-time trade-offs

This study examines how delivery-tier expansion shapes online food delivery choices when price-time trade-offs are held constant. Drawing on context-dependent choice theory and prospect theory, we conducted a between-subjects discrete-choice experiment with 438 South Korean consumers assigned to either a two-tier menu (Free and Economy) or a three-tier menu (Free, Economy, and Single-order). Paid options offered the same price per minute saved, isolating choice-set structure from economic efficiency. Adding single-order delivery significantly reduced free delivery selection and captured 30.49% of choices. Economy delivery’s incumbent-relative share increased slightly but not significantly, indicating no reliable canonical compromise effect. Across logit and cross-nested logit models, price loss aversion was associated with free delivery selection, whereas time loss aversion was associated with faster paid tiers, especially single-order delivery. The findings position delivery portfolios as behavioral segmentation devices in platform-mediated hospitality services.