Causes of Preference Reversal Phenomenon

2021 ◽  
pp. 41-49
Author(s):  
Kazuhisa Takemura
Keyword(s):  
Preference Reversal ◽  
Reversal Phenomenon ◽  
Preference Reversal Phenomenon

Anomalies: Preference Reversals

1990 ◽  
Vol 4 (2) ◽  
pp. 201-211 ◽  
Author(s):  
Amos Tversky ◽  
Richard H Thaler
Keyword(s):  
Preference Order ◽  
Preference Reversal ◽  
Preference Reversals ◽  
Reversal Phenomenon ◽  
Traditional Assumption ◽  
Preference Reversal Phenomenon ◽  
Elicitation Procedure ◽  
Relative Weighting

The preference reversal phenomenon has been established in numerous studies during the last two decades, but its causes have only recently been uncovered. This phenomenon, or cluster of phenomena, challenges the traditional assumption that the decisionmaker has a fixed preference order that is captured accurately by any reliable elicitation procedure. If option A is priced higher than option B, we cannot always assume that A is preferred to B in a direct comparison. The evidence shows that different methods of elicitation could change the relative weighting of the attributes and give rise to different orderings.

scholarly journals Attention and salience in preference reversals

2022 ◽  
Author(s):  
Carlos Alós-Ferrer ◽  
Alexander Ritschel
Keyword(s):  
Eye Movements ◽  
Eye Tracking ◽  
Preference Reversal ◽  
Preference Reversals ◽  
Risky Choices ◽  
Reversal Phenomenon ◽  
The World ◽  
Preference Reversal Phenomenon

AbstractWe investigate the implications of Salience Theory for the classical preference reversal phenomenon, where monetary valuations contradict risky choices. It has been stated that one factor behind reversals is that monetary valuations of lotteries are inflated when elicited in isolation, and that they should be reduced if an alternative lottery is present and draws attention. We conducted two preregistered experiments, an online choice study ($$N=256$$ N = 256 ) and an eye-tracking study ($$N=64$$ N = 64 ), in which we investigated salience and attention in preference reversals, manipulating salience through the presence or absence of an alternative lottery during evaluations. We find that the alternative lottery draws attention, and that fixations on that lottery influence the evaluation of the target lottery as predicted by Salience Theory. The effect, however, is of a modest magnitude and fails to translate into an effect on preference reversal rates in either experiment. We also use transitions (eye movements) across outcomes of different lotteries to study attention on the states of the world underlying Salience Theory, but we find no evidence that larger salience results in more transitions.

Sign in / Sign up

Export Citation Format

Share Document