Improving One's Choices by Putting Oneself in Others' Shoes – An Experimental Analysis

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Improving One's Choices by Putting Oneself in Others' Shoes – An Experimental Analysis. / Li, Zhihua; Rohde, Kirsten; Wakker, Peter.

In: Journal of Risk and Uncertainty, 01.02.2017.

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@article{982904d3125b470a8dc82367f5ad70c6,
title = "Improving One's Choices by Putting Oneself in Others' Shoes – An Experimental Analysis",
abstract = "This paper investigates how letting people predict others{\textquoteright} choices under risk affects subsequent own choices. We find an improvement of strong rationality (risk neutrality) for losses in own choices, but no such improvement for gains. There is no improvement of weak rationality (avoiding preference reversals). Overall, risk aversion in own choices increases. Conversely, for the effects of own choices on predicting for others, the risk aversion predicted in others{\textquoteright} choices is reduced if preceded by own choices, for both gains and losses. Remarkably, we find a new probability matching paradox at the group level. Relative to preceding studies on the effects of predicting others{\textquoteright} choices, we added real incentives, pure framing effects, and simplicity of stimuli. Our stimuli were maximally targeted towards our research questions.",
keywords = "risk attitudes , framing effects , self-other discrepancy , predicting others' choices , social comparisons",
author = "Zhihua Li and Kirsten Rohde and Peter Wakker",
year = "2017",
month = feb,
day = "1",
doi = "10.1007/s11166-017-9253-3",
language = "English",
journal = "Journal of Risk and Uncertainty",
issn = "0895-5646",
publisher = "Springer",

}

RIS

TY - JOUR

T1 - Improving One's Choices by Putting Oneself in Others' Shoes – An Experimental Analysis

AU - Li, Zhihua

AU - Rohde, Kirsten

AU - Wakker, Peter

PY - 2017/2/1

Y1 - 2017/2/1

N2 - This paper investigates how letting people predict others’ choices under risk affects subsequent own choices. We find an improvement of strong rationality (risk neutrality) for losses in own choices, but no such improvement for gains. There is no improvement of weak rationality (avoiding preference reversals). Overall, risk aversion in own choices increases. Conversely, for the effects of own choices on predicting for others, the risk aversion predicted in others’ choices is reduced if preceded by own choices, for both gains and losses. Remarkably, we find a new probability matching paradox at the group level. Relative to preceding studies on the effects of predicting others’ choices, we added real incentives, pure framing effects, and simplicity of stimuli. Our stimuli were maximally targeted towards our research questions.

AB - This paper investigates how letting people predict others’ choices under risk affects subsequent own choices. We find an improvement of strong rationality (risk neutrality) for losses in own choices, but no such improvement for gains. There is no improvement of weak rationality (avoiding preference reversals). Overall, risk aversion in own choices increases. Conversely, for the effects of own choices on predicting for others, the risk aversion predicted in others’ choices is reduced if preceded by own choices, for both gains and losses. Remarkably, we find a new probability matching paradox at the group level. Relative to preceding studies on the effects of predicting others’ choices, we added real incentives, pure framing effects, and simplicity of stimuli. Our stimuli were maximally targeted towards our research questions.

KW - risk attitudes

KW - framing effects

KW - self-other discrepancy

KW - predicting others' choices

KW - social comparisons

U2 - 10.1007/s11166-017-9253-3

DO - 10.1007/s11166-017-9253-3

M3 - Article

JO - Journal of Risk and Uncertainty

JF - Journal of Risk and Uncertainty

SN - 0895-5646

ER -