TRANSLATION OF GAMBLES AND ASPIRATION LEVEL EFFECTS IN RISKY CHOICE BEHAVIOR.
Published
Journal Article
Two recent models of risky decision-making have emphasized the importance of a target return or a reference point in determining preferences and choices among gambles. Target returns and reference points represent variations on the concept of an aspiration level, an old idea in theories of decision-making. Additional evidence on the need to incorporate such a concept in the analysis of risky choice behavior is presented. In three experiments, the relationship of pairs of gambles to an assumed reference point was varied by adding or subtractng a constant amount from all outcomes. The results demonstrate that such translations of outcomes can result in the reversal of choice within pairs of gambles.
Full Text
Duke Authors
Cited Authors
- Payne, JW; Laughhunn, DJ; Crum, R
Published Date
- January 1, 1980
Published In
Volume / Issue
- 26 / 10
Start / End Page
- 1039 - 1060
International Standard Serial Number (ISSN)
- 0025-1909
Digital Object Identifier (DOI)
- 10.1287/mnsc.26.10.1039
Citation Source
- Scopus