The Role of Self-Connectedness in Short Run Losses and Long Run Gains

Suzanne Shu, University of California at Los Angeles, USA
This paper shows that individuals focus on gains in the long run but losses in the short run, and asks how such a focus affects outcome valuation and choice for risky outcomes. These findings suggest that curvature of the Prospect Theory value function may change once time is incorporated. Additional studies demonstrate that this differential focus on short-run losses versus long-run gains is moderated by individuals’ feelings of connectedness to their future selves.
[ to cite ]:
Suzanne Shu (2010) ,"The Role of Self-Connectedness in Short Run Losses and Long Run Gains", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 246-249 .