Risk Preferences For Experiences, Or How Desserts Are Like Losses

Jolie M. Martin, Pinterest, USA
Martin Reimann, University of Arizona, USA
Michael I. Norton, Harvard Business School, USA
When and why do people gamble on experiences? We assess risk preferences for negative (dentists) and positive (desserts) everyday experiences. Experiential reference points are set by memories of extreme experiences, making desserts like losses and dentists like gains – such that people are risk-averse for negative but risk-seeking for positive experiences.
[ to cite ]:
Jolie M. Martin, Martin Reimann, and Michael I. Norton (2015) ,"Risk Preferences For Experiences, Or How Desserts Are Like Losses", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 218-223.