Further tests of Aspiration Level Effects in Risky Choice Behavior.
Abstract
This note extends the work on the need to incorporate a target return, reference point, or aspiration level concept in the analysis of risky choice behavior. Two experiments are reported. The first experiment provides a more complete test of the model of reference point effects previously developed. A translation of outcomes procedure, which adds a constant to all outcomes, was use to vary the relationship of pairs of gambles to an assumed target or reference point. The results fully support the model. The second experiment provides evidence of the conceptual validity of the model by using explicit instructions to vary the target levels of managers, while holding gamble values constant.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1981
- Accession Number
- ADA100993
Entities
People
- Dan J. Laughhunn
- John W. Payne
- Roy Crum
Organizations
- Duke University