Are preference reversals reduced when made explicit?

Lisa D Ordonez, Barbara A. Mellers, Shi‐Jie ‐J Chang, Jordan Roberts

Research output: Contribution to journalArticle

14 Citations (Scopus)

Abstract

Previous research has shown that preferences for options, such as gambles, can reverse depending on the response mode. These preference reversals have been demonstrated when tasks were performed sequentially. That is, subjects completed one task before beginning another. In an attempt to eliminate preference reversals, we asked subjects to perform tasks simultaneously. That is, subjects made two types of responses for each pair of gambles before evaluating the next pair. In the condition with no financial incentives, preference reversal rates were slightly reduced. In another condition, subjects were paid for their participation and they were allowed to play a gamble with real monetary compensation. A gamble pair was randomly selected, and if a subject's responses in the two tasks were consistent for that pair, he or she was allowed to play the ‘preferred’ gamble. Otherwise, the experimenter selected the gamble from the pair. With these financial incentives, systematic preference reversals were eliminated for two of the three task combinations. Preference reversals continued to occur for attractiveness ratings versus selling prices, although, even for that pair of tasks, the reversal rate was significantly reduced. For all three task pairs, preference orders from the two tasks appeared to merge into more consistent orders.

Original languageEnglish (US)
Pages (from-to)265-277
Number of pages13
JournalJournal of Behavioral Decision Making
Volume8
Issue number4
DOIs
StatePublished - 1995

Fingerprint

Motivation
Research
incentive
Preference reversal
Gambles
social attraction
selling
rating
Incentives
participation
Financial incentives
Attractiveness
Experimenter
Participation
Rating

Keywords

  • change‐of‐process theory
  • preference reversals
  • strength of preference judgments
  • violations of expected utility theory

ASJC Scopus subject areas

  • Decision Sciences(all)
  • Arts and Humanities (miscellaneous)
  • Applied Psychology
  • Sociology and Political Science
  • Strategy and Management

Cite this

Are preference reversals reduced when made explicit? / Ordonez, Lisa D; Mellers, Barbara A.; Chang, Shi‐Jie ‐J; Roberts, Jordan.

In: Journal of Behavioral Decision Making, Vol. 8, No. 4, 1995, p. 265-277.

Research output: Contribution to journalArticle

Ordonez, Lisa D ; Mellers, Barbara A. ; Chang, Shi‐Jie ‐J ; Roberts, Jordan. / Are preference reversals reduced when made explicit?. In: Journal of Behavioral Decision Making. 1995 ; Vol. 8, No. 4. pp. 265-277.
@article{1b6e6c3f2a234aa6925dcc7116071e69,
title = "Are preference reversals reduced when made explicit?",
abstract = "Previous research has shown that preferences for options, such as gambles, can reverse depending on the response mode. These preference reversals have been demonstrated when tasks were performed sequentially. That is, subjects completed one task before beginning another. In an attempt to eliminate preference reversals, we asked subjects to perform tasks simultaneously. That is, subjects made two types of responses for each pair of gambles before evaluating the next pair. In the condition with no financial incentives, preference reversal rates were slightly reduced. In another condition, subjects were paid for their participation and they were allowed to play a gamble with real monetary compensation. A gamble pair was randomly selected, and if a subject's responses in the two tasks were consistent for that pair, he or she was allowed to play the ‘preferred’ gamble. Otherwise, the experimenter selected the gamble from the pair. With these financial incentives, systematic preference reversals were eliminated for two of the three task combinations. Preference reversals continued to occur for attractiveness ratings versus selling prices, although, even for that pair of tasks, the reversal rate was significantly reduced. For all three task pairs, preference orders from the two tasks appeared to merge into more consistent orders.",
keywords = "change‐of‐process theory, preference reversals, strength of preference judgments, violations of expected utility theory",
author = "Ordonez, {Lisa D} and Mellers, {Barbara A.} and Chang, {Shi‐Jie ‐J} and Jordan Roberts",
year = "1995",
doi = "10.1002/bdm.3960080404",
language = "English (US)",
volume = "8",
pages = "265--277",
journal = "Journal of Behavioral Decision Making",
issn = "0894-3257",
publisher = "John Wiley and Sons Ltd",
number = "4",

}

TY - JOUR

T1 - Are preference reversals reduced when made explicit?

AU - Ordonez, Lisa D

AU - Mellers, Barbara A.

AU - Chang, Shi‐Jie ‐J

AU - Roberts, Jordan

PY - 1995

Y1 - 1995

N2 - Previous research has shown that preferences for options, such as gambles, can reverse depending on the response mode. These preference reversals have been demonstrated when tasks were performed sequentially. That is, subjects completed one task before beginning another. In an attempt to eliminate preference reversals, we asked subjects to perform tasks simultaneously. That is, subjects made two types of responses for each pair of gambles before evaluating the next pair. In the condition with no financial incentives, preference reversal rates were slightly reduced. In another condition, subjects were paid for their participation and they were allowed to play a gamble with real monetary compensation. A gamble pair was randomly selected, and if a subject's responses in the two tasks were consistent for that pair, he or she was allowed to play the ‘preferred’ gamble. Otherwise, the experimenter selected the gamble from the pair. With these financial incentives, systematic preference reversals were eliminated for two of the three task combinations. Preference reversals continued to occur for attractiveness ratings versus selling prices, although, even for that pair of tasks, the reversal rate was significantly reduced. For all three task pairs, preference orders from the two tasks appeared to merge into more consistent orders.

AB - Previous research has shown that preferences for options, such as gambles, can reverse depending on the response mode. These preference reversals have been demonstrated when tasks were performed sequentially. That is, subjects completed one task before beginning another. In an attempt to eliminate preference reversals, we asked subjects to perform tasks simultaneously. That is, subjects made two types of responses for each pair of gambles before evaluating the next pair. In the condition with no financial incentives, preference reversal rates were slightly reduced. In another condition, subjects were paid for their participation and they were allowed to play a gamble with real monetary compensation. A gamble pair was randomly selected, and if a subject's responses in the two tasks were consistent for that pair, he or she was allowed to play the ‘preferred’ gamble. Otherwise, the experimenter selected the gamble from the pair. With these financial incentives, systematic preference reversals were eliminated for two of the three task combinations. Preference reversals continued to occur for attractiveness ratings versus selling prices, although, even for that pair of tasks, the reversal rate was significantly reduced. For all three task pairs, preference orders from the two tasks appeared to merge into more consistent orders.

KW - change‐of‐process theory

KW - preference reversals

KW - strength of preference judgments

KW - violations of expected utility theory

UR - http://www.scopus.com/inward/record.url?scp=84980187362&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84980187362&partnerID=8YFLogxK

U2 - 10.1002/bdm.3960080404

DO - 10.1002/bdm.3960080404

M3 - Article

AN - SCOPUS:84980187362

VL - 8

SP - 265

EP - 277

JO - Journal of Behavioral Decision Making

JF - Journal of Behavioral Decision Making

SN - 0894-3257

IS - 4

ER -