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Domain-based asymmetry in expectations of the future
We examine how prior outcomes can influence expectations about unrelated future events. Consistent with the affect literature, we first predict that prior outcomes will yield more optimistic expectations when the outcomes are positively, rather than negatively, valenced. We then predict that the imp...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier Inc.
2006
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7125907/ https://www.ncbi.nlm.nih.gov/pubmed/32288178 http://dx.doi.org/10.1016/j.obhdp.2006.02.002 |
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author | Monga, Ashwani Rao, Akshay R. |
author_facet | Monga, Ashwani Rao, Akshay R. |
author_sort | Monga, Ashwani |
collection | PubMed |
description | We examine how prior outcomes can influence expectations about unrelated future events. Consistent with the affect literature, we first predict that prior outcomes will yield more optimistic expectations when the outcomes are positively, rather than negatively, valenced. We then predict that the impact of prior outcomes will depend on not only the valence, but also the domain of prior outcomes. Specifically, we draw from Prospect theory to predict that the impact of prior outcomes on future expectations will be greater in the domain of losses than in the domain of gains. Two lottery-based experiments demonstrate that this effect is robust across different starting and ending wealth states, and a third experiment shows that these differences in expectations also translate into differences in risk preferences. |
format | Online Article Text |
id | pubmed-7125907 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2006 |
publisher | Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-71259072020-04-08 Domain-based asymmetry in expectations of the future Monga, Ashwani Rao, Akshay R. Organ Behav Hum Decis Process Article We examine how prior outcomes can influence expectations about unrelated future events. Consistent with the affect literature, we first predict that prior outcomes will yield more optimistic expectations when the outcomes are positively, rather than negatively, valenced. We then predict that the impact of prior outcomes will depend on not only the valence, but also the domain of prior outcomes. Specifically, we draw from Prospect theory to predict that the impact of prior outcomes on future expectations will be greater in the domain of losses than in the domain of gains. Two lottery-based experiments demonstrate that this effect is robust across different starting and ending wealth states, and a third experiment shows that these differences in expectations also translate into differences in risk preferences. Elsevier Inc. 2006-05 2006-03-20 /pmc/articles/PMC7125907/ /pubmed/32288178 http://dx.doi.org/10.1016/j.obhdp.2006.02.002 Text en Copyright © 2006 Elsevier Inc. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Monga, Ashwani Rao, Akshay R. Domain-based asymmetry in expectations of the future |
title | Domain-based asymmetry in expectations of the future |
title_full | Domain-based asymmetry in expectations of the future |
title_fullStr | Domain-based asymmetry in expectations of the future |
title_full_unstemmed | Domain-based asymmetry in expectations of the future |
title_short | Domain-based asymmetry in expectations of the future |
title_sort | domain-based asymmetry in expectations of the future |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7125907/ https://www.ncbi.nlm.nih.gov/pubmed/32288178 http://dx.doi.org/10.1016/j.obhdp.2006.02.002 |
work_keys_str_mv | AT mongaashwani domainbasedasymmetryinexpectationsofthefuture AT raoakshayr domainbasedasymmetryinexpectationsofthefuture |