Recency and Reference Point Formation: the Effect on Risky Choice Behavior

We test whether the order in which participants learn the outcomes of a gamble affects risk-preferences. In 2 studies, participants are more likely to choose a risky gamble when outcomes are revealed in an ascending rather than descending order. We suggest that the most recent outcome serves as a reference point.



Citation:

George Wu and Michael Yeomans (2012) ,"Recency and Reference Point Formation: the Effect on Risky Choice Behavior", in NA - Advances in Consumer Research Volume 40, eds. Zeynep Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 284-287.

Authors

George Wu, University of Chicago, USA
Michael Yeomans, University of Chicago, USA



Volume

NA - Advances in Consumer Research Volume 40 | 2012



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