How false feedback influences decision-makers' risk preferences
(2022) In Journal of Behavioral Decision Making 35(5).- Abstract
Recent decision-making research provides empirical evidence that human risk preferences are constructed “on the fly” during risk elicitation, influenced by the decision-making context and the method of risk elicitation (Kusev et al., 2020). In this article, we explore the lability of human risk preferences and argue that the most recent choices guide decision-making. Accordingly, our novel proposal and experimental method provide a psychological tool that measures people's shift in preferences. Specifically, in our experiment (240 participants, registered UK users of an online survey panel), we developed and employed a two-stage risk elicitation experimental method. The results from the experiment revealed that providing participants... (More)
Recent decision-making research provides empirical evidence that human risk preferences are constructed “on the fly” during risk elicitation, influenced by the decision-making context and the method of risk elicitation (Kusev et al., 2020). In this article, we explore the lability of human risk preferences and argue that the most recent choices guide decision-making. Accordingly, our novel proposal and experimental method provide a psychological tool that measures people's shift in preferences. Specifically, in our experiment (240 participants, registered UK users of an online survey panel), we developed and employed a two-stage risk elicitation experimental method. The results from the experiment revealed that providing participants with false feedback on their initial decisions (stage 1) changes their risk preferences at the feedback stage of the experiment in the direction of the false feedback. Moreover, participants' final decisions (stage 2) were influenced by the type of feedback (correct or false) and informed by their altered risk preferences at the feedback stage of the experiment. In conclusion, our work provides experimental evidence that human preferences are constructed “on the fly,” influenced by the decision-making context and recent decision-making experience (e.g., Kusev et al., 2020; Slovic, 1995).
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- author
- Kusev, Petko ; van Schaik, Paul ; Teal, Joseph ; Martin, Rose ; Hall, Lars LU and Johansson, Petter LU
- organization
- publishing date
- 2022-12
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- decision experience, decision-making under risk, false feedback, preference reversals, prospect theory
- in
- Journal of Behavioral Decision Making
- volume
- 35
- issue
- 5
- article number
- e2278
- publisher
- John Wiley & Sons Inc.
- external identifiers
-
- scopus:85124722185
- ISSN
- 0894-3257
- DOI
- 10.1002/bdm.2278
- language
- English
- LU publication?
- yes
- id
- 3d11532f-f4ca-48a5-b33b-b46b0daf7255
- date added to LUP
- 2022-04-14 11:39:11
- date last changed
- 2023-01-04 14:35:56
@article{3d11532f-f4ca-48a5-b33b-b46b0daf7255,
abstract = {{<p>Recent decision-making research provides empirical evidence that human risk preferences are constructed “on the fly” during risk elicitation, influenced by the decision-making context and the method of risk elicitation (Kusev et al., 2020). In this article, we explore the lability of human risk preferences and argue that the most recent choices guide decision-making. Accordingly, our novel proposal and experimental method provide a psychological tool that measures people's shift in preferences. Specifically, in our experiment (240 participants, registered UK users of an online survey panel), we developed and employed a two-stage risk elicitation experimental method. The results from the experiment revealed that providing participants with false feedback on their initial decisions (stage 1) changes their risk preferences at the feedback stage of the experiment in the direction of the false feedback. Moreover, participants' final decisions (stage 2) were influenced by the type of feedback (correct or false) and informed by their altered risk preferences at the feedback stage of the experiment. In conclusion, our work provides experimental evidence that human preferences are constructed “on the fly,” influenced by the decision-making context and recent decision-making experience (e.g., Kusev et al., 2020; Slovic, 1995).</p>}},
author = {{Kusev, Petko and van Schaik, Paul and Teal, Joseph and Martin, Rose and Hall, Lars and Johansson, Petter}},
issn = {{0894-3257}},
keywords = {{decision experience; decision-making under risk; false feedback; preference reversals; prospect theory}},
language = {{eng}},
number = {{5}},
publisher = {{John Wiley & Sons Inc.}},
series = {{Journal of Behavioral Decision Making}},
title = {{How false feedback influences decision-makers' risk preferences}},
url = {{http://dx.doi.org/10.1002/bdm.2278}},
doi = {{10.1002/bdm.2278}},
volume = {{35}},
year = {{2022}},
}