Financial prospect relativity: context effects in financial decision-making under risk
Vlaev, Ivo, Chater, Nick and Stewart, Neil, 1974-. (2007) Financial prospect relativity: context effects in financial decision-making under risk. Journal of Behavioral Decision Making, Vol.20 (No.3). pp. 273-304. ISSN 0894-3257Full text not available from this repository.
Official URL: http://dx.doi.org/10.1002/bdm.555
We report three studies in which methodologies from psychophysics are adapted to investigate context effects on individual financial decision-making under risk. The aim was to determine how the range and the rank of the options offered as saving amounts and levels of investment risk influence people's decisions about these variables. In the range manipulation, participants were presented with either a full range of choice options or a limited subset, while in the rank manipulation they were presented with a skewed set of feasible options. The results showed that choices are affected by the position of each option in the range and the rank of presented options, which suggests that judgments and choices are relative. Copyright (c) 2006 John Wiley & Sons, Ltd.
|Item Type:||Journal Article|
|Subjects:||B Philosophy. Psychology. Religion > BF Psychology|
|Divisions:||Faculty of Science > Psychology|
|Journal or Publication Title:||Journal of Behavioral Decision Making|
|Publisher:||John Wiley & Sons Ltd.|
|Official Date:||July 2007|
|Number of Pages:||32|
|Page Range:||pp. 273-304|
|Access rights to Published version:||Restricted or Subscription Access|
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