Multiple prospect framing and decision behavior: The mediational roles of perceived riskiness and perceived ambiguity

Organizational Behavior and Human Decision Processes

Volumn 101, Issue 1, 2006, Pages 59-73

  Venkatraman, Srinivasan ^a   Aloysius, John A ^a   Davis, Fred D ^a  

^a UNIVERSITY OF ARKANSAS   (United States)

Author keywords

Judgment and decision making; Multiple prospect framing; Perceived ambiguity; Perceived riskiness; Preference reversal

Indexed keywords

EID: 33748898910     PISSN: 07495978     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.obhdp.2006.04.006     Document Type: Article

References (72)

1. Aloysius J.A. Ambiguity aversion and the equity premium puzzle: A re-examination of experimental data on repeated gambles. Journal of Socio-Economics 34 (2005) 635-655
2. Anderson J.C., and Gerbing D.W. Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin 103 3 (1988) 411-423
3. Baron J., and Frisch D. Ambiguous probabilities and the paradoxes of expected utility. In: Wright G., and Ayton P. (Eds). Subjective probability (1994), John Wiley, New York, NY 273-294
4. Benartzi S., and Thaler R.H. Myopic loss aversion and the equity premium puzzle. Quarterly Journal of Economics 110 1 (1995) 73-92
5. Benartzi S., and Thaler R.H. Risk aversion or myopia? Choices in repeated gambles and retirement investments. Management Science 45 3 (1999) 364-381
6. Bernoulli D. Exposition of a new theory on the measurement of risk. Econometrica 22 (1954/1738) 23-36
7. Bleichrodt H., Pinto J.L., and Wakker P.P. Making descriptive use of prospect theory to improve prescriptive applications of expected utility. Management Science 47 (2001) 1498-1514
8. Boiney L.G. The effects of skewed probability on decision making under ambiguity. Organizational Behavior and Human Decision Processes 56 (1993) 134-148
9. Camerer C.F. Individual decision making. In: Kagel J.H., and Roth A.E. (Eds). Handbook of experimental economics (1995), Princeton University Press, Princeton, NJ 587-703
10. Camerer C.F. Prospect theory in the wild: Evidence from the field. In: Kahneman D., and Tversky A. (Eds). Choices, values, and frames (2000), Cambridge University Press, Cambridge, UK 288-300
11. Camerer C.F. Three cheers-Psychological, theoretical, empirical-for loss aversion. Journal of Marketing Research 42 2 (2005) 129-133
12. Camerer C.F., and Loewenstein G. Behavioral economics: Past, present, and future. In: Camerer C., Loewenstein G., and Rabin M. (Eds). Advances in behavioral economics (2004), Russell Sage Foundation, New York, NY 3-51
13. Camerer C.F., and Weber M. Recent developments in modeling preferences: Uncertainty and ambiguity. Journal of Risk and Uncertainty 5 (1992) 325-370
14. Curley S.P., and Yates J.F. An empirical evaluation of descriptive models of ambiguity reactions in choice situations. Journal of Mathematical Psychology 33 (1989) 397-427
15. Curley S.P., Yates J.F., and Abrams R.A. Psychological sources of ambiguity avoidance. Organizational Behavior and Human Decision Processes 38 (1986) 230-256
16. DeVellis, R. F. (1991). Scale development: Theory and applications (Vol. 26). Newbury Park, CA: Sage Publications.
17. Di Mauro C.D., and Maffioletti A. Attitudes to risk and attitudes to uncertainty: Experimental evidence. Applied Economics 36 (2004) 357-372
18. Einhorn H.J., and Hogarth R.M. Decision making under ambiguity. Journal of Business 59 4 (1986) 225-250
19. Ellsberg D. Risk, ambiguity, and the Savage axioms. Quarterly Journal of Economics 75 (1961) 643-669
20. Ericsson K.A., and Simon H.A. Verbal reports as data. Psychological Review 87 (1980) 215-251
21. Fornell C., and Larcker D.F. Evaluating structural equation models with unobservable variable and measurement error. Journal of Marketing Research 18 (1981) 39-50
22. Fox C.R., and See K.E. Belief and preference in decision under uncertainty. In: Hardman D., and Macchi L. (Eds). Thinking: Psychological perspectives on reasoning, judgment, and decision making (2003), John Wiley, New York, NY 273-314
23. Fox C.R., and Tversky A. Ambiguity aversion and comparative ignorance. The Quarterly Journal of Economics 110 (1995) 585-603
24. Fox C.R., and Weber M. Ambiguity aversion, comparative ignorance, and decision context. Organizational Behavior and Human Decision Processes 88 1 (2002) 476-498
25. Frisch D., and Baron J. Ambiguity and rationality. Journal of Behavioral Decision Making 1 (1988) 149-157
26. Glimcher P.W. Decisions, uncertainty, and the brain (2003), MIT Press, Cambridge, MA
27. Gneezy U., and Potters J. An experiment on risk taking and evaluation periods. Quarterly Journal of Economics 112 (1997) 631-645
28. Heath C., and Tversky A. Preference and belief: Ambiguity and competence in choice under uncertainty. Journal of Risk and Uncertainty 4 (1991) 5-28
29. Hogarth R.M. Decision time as a function of task complexity. In: Wendt S., and Vlek S. (Eds). Utility, probability, and human decision making (1975), Reidel, Dordrecht, Holland 321-338
30. Hogarth R.M., and Einhorn H.J. Venture theory: A model of decision weights. Management Science 36 (1990) 780-803
31. Hogarth R.M., and Kunreuther H.C. Risk, ambiguity, and insurance. Journal of Risk and Uncertainty 2 (1989) 5-35
32. Jia J., Dyer J.S., and Butler J.C. Measures of perceived risk. Management Science 45 (1999) 519-532
33. Judd, C. M., & McClelland, G. H. (1998). Measurement. In D.T. Gilbert, S.T. Fiske, & G. Lindzey. The handbook of social psychology (4th ed. Vol. 1, pp. 180-232). Boston, MA: McGraw-Hill.
34. Kahneman D. A perspective on judgment and choice: Mapping bounded rationality. American Psychologist 58 9 (2003) 697-720
35. Kahneman D., and Lovallo D. Timid choices and bold forecasts: A cognitive perspective on risk taking. Management Science 39 1 (1993) 17-31
36. Keeney R.L., and Raiffa H. Decisions with multiple objectives: Preferences and value tradeoffs (1976), John Wiley, New York, NY
37. Keppe H., and Weber M. Judged knowledge and ambiguity aversion. Theory and Decision 39 (1995) 51-77
38. Keren G. The explanatory power of choice bracketing: A commentary on Read et al., choice bracketing. Journal of Risk and Uncertainty 19 (1999) 199-200
39. Langer T., and Weber M. Prospect theory, mental accounting, and differences in aggregated and segregated evaluation of lottery portfolios. Management Science 47 5 (2001) 716-733
40. Lauriola M., and Lewin I.P. Relating individual differences in attitude toward ambiguity to risky choices. Journal of Behavioral Decision Making 14 (2001) 107-122
41. Lerner J.S., and Tetlock P.E. Accounting for the effects of accountability. Psychological Bulletin 125 2 (1999) 255-275
42. Loewenstein G.F., Weber E.U., Hsee C.K., and Welch N. Risk as feelings. Psychological Bulletin 127 2 (2001) 267-286
43. Lopes L.L. Between hope and fear: The psychology of risk. Advances in Experimental Social Psychology 20 (1987) 255-295
44. MacKinnon D.P., Krull J.L., and Lockwood C.M. Equivalence of the mediation, confounding, and suppression effects. Prevention Science 1 (2000) 173-181
45. Mehra R., and Prescott E.C. The equity premium: A puzzle. Journal of Monetary Economics 15 (1985) 145-161
46. Meyer R.F. Upside opportunity and downside risk. In: Zeckhauser R.J., Keeney R.L., and Sebenius J.K. (Eds). Wise choices: Decisions, games, and negotiations (1996), Harvard Business School Press, Boston, MA 119-132
47. Nisbett R.E., and Wilson T.D. Telling more than we can know: Verbal reports on mental processes. Psychological Review 84 (1977) 231-259
48. Novemsky N., and Kahneman D. The boundaries of loss aversion. Journal of Marketing Research 42 2 (2005) 119-128
49. Nunnally J.C., and Bernstein I.H. Psychometric theory (1994), McGraw-Hill, New York, NY
50. Pollatsek A., and Tversky A. A theory of risk. Journal of Mathematical Psychology 7 (1970) 540-553
51. Rabin M. Risk aversion and expected-utility theory: A calibration theorem. Econometrica 68 (2000) 1281-1292
52. Raiffa H. Risk, ambiguity, and the Savage axioms: Comment. Quarterly Journal of Economics 75 (1961) 690-694
53. Read D., Loewenstein G., and Rabin M. Choice bracketing. Journal of Risk and Uncertainty 19 (1999) 171-197
54. Redelmeier D.A., and Tversky A. On the framing of multiple prospects. Psychological Science 3 3 (1992) 191-193
55. Rode C., Cosmides L., Hell W., and Tooby J. When and why do people avoid unknown probabilities in decisions under uncertainty? Testing some predictions from optimal foraging theory. Cognition 72 (1999) 269-304
56. Savage L.J. The foundations of statistics. 2nd ed. (1972), Dover Publications, New York, NY
57. Shrout P.E., and Bolger N. Mediation in experimental and nonexperimental studies: New procedures and recommendations. Psychological Methods 7 (2002) 422-445
58. Simon, H. A. & Associates (1992). Decision making and problem solving. In M. Zey (Ed.), Decision making: Alternatives to rational choice models. London: Sage, pp. 32-53.
59. Sjoberg L. Worry and risk perception. Risk Analysis 18 1 (1998) 85-93
60. Slovic P. Perception of risk. Science 236 (1987) 280-285
61. Smith K., Dickhaut J., McCabe K., and Pardo J.V. Neuronal substrates for choice under ambiguity, risk, gains, and losses. Management Science 48 6 (2002) 711-718
62. Thaler R.H., Tversky A., Kahneman D., and Schwartz A. The effect of myopia and loss aversion on risk taking: An experimental test. Quarterly Journal of Economics 112 2 (1997) 647-661
63. Todd P.M. Fast and frugal heuristics for environmentally bounded minds. In: Gigerenzer G., and Selten R. (Eds). Bounded rationality: The adaptive toolbox (2002), MIT Press, Cambridge, MA 51-70
64. Tversky A. Contrasting rational and psychological principles of choice. In: Zeckhauser R.J., Keeney R.L., and Sebenius J.K. (Eds). Wise choices: Decisions, games, and negotiations (1996), Harvard Business School Press, Boston, MA 5-21
65. Tversky A., and Kahneman D. Availability: A heuristic for judging frequency and probability. Cognitive Psychology 5 (1971) 207-232
66. Tzelgov J., and Henik A. Suppression situations in psychological research: Definitions, implications, and applications. Psychological Bulletin 109 3 (1991) 524-536
67. Viscusi W.K., and Magat W.A. Bayesian decisions with ambiguous belief aversion. Journal of Risk and Uncertainty 5 (1992) 371-387
68. Weber E.U., Blais A.-R., and Betz N.E. A domain-specific risk-attitude scale: Measuring risk perceptions and risk behaviors. Journal of Behavioral Decision Making 15 4 (2002) 263-290
69. Weber E.U., and Milliman R.A. Perceived risk attitudes: Relating risk perception to risky choice. Management Science 43 (1997) 123-144
70. West S.G., and Hepworth J.T. Statistical issues in the study of temporal data: Daily experiences. Journal of Personality 59 3 (1991) 609-662
71. Wilson T.D., and Brekke N. Mental contamination and mental correction: Unwanted influences on judgments and evaluations. Psychological Bulletin 116 (1994) 117-142
72. Yates J.F., and Stone E.R. The risk construct. In: Yates J.F. (Ed). Risk-taking behavior (1992), John Wiley, New York, NY 1-25