scholarly journals When Do Reference Points Update? A Field Analysis of the Effect of Prior Gains and Losses on Risk-Taking over Time

2017 ◽  
Author(s):  
Maximilian RRdisser ◽  
Raphael Flepp ◽  
Egon P. Franck
2018 ◽  
Vol 06 (01) ◽  
pp. 1850002
Author(s):  
SANTIAGO CARBO-VALVERDE ◽  
FRANCISCO RODRIGUEZ-FERNANDEZ

Reducing credit procyclicality represents one of the key challenges on the regulatory agenda to reform the financial system architecture. Some early experiences may provide some insights on how countercyclical regulations may be effective. The Spanish dynamic provisions scheme implemented in 2000 is one of the main reference points in this context. We analyze the effects of dynamic provisions on managerial accounting discretion and ex-ante risk-taking behavior by banks. We empirically examine a sample of Spanish banks using quarterly information from 1995Q1 to 2013Q4. Our findings suggest that the counter-cyclicality of provisions has been reduced over time, as it has also been the case of managerial discretion (income smoothing and profit signaling). However, the results suggest that banks game on dynamic provisions by taking an ex-ante riskier behavior once the dynamic provisioning scheme is adopted.


1964 ◽  
Author(s):  
Jerome L. Myers ◽  
Mary M. Suydam ◽  
Blase Gambino
Keyword(s):  

2010 ◽  
Vol 67 (6) ◽  
pp. 1185-1197 ◽  
Author(s):  
C. Fernández ◽  
S. Cerviño ◽  
N. Pérez ◽  
E. Jardim

Abstract Fernández, C., Cerviño, S., Pérez, N., and Jardim, E. 2010. Stock assessment and projections incorporating discard estimates in some years: an application to the hake stock in ICES Divisions VIIIc and IXa. – ICES Journal of Marine Science, 67: 1185–1197. A Bayesian age-structured stock assessment model is developed to take into account available information on discards and to handle gaps in the time-series of discard estimates. The model incorporates mortality attributable to discarding, and appropriate assumptions about how this mortality may change over time are made. The result is a stock assessment that accounts for information on discards while, at the same time, producing a complete time-series of discard estimates. The method is applied to the hake stock in ICES Divisions VIIIc and IXa, for which the available data indicate that some 60% of the individuals caught are discarded. The stock is fished by Spain and Portugal, and for each country, there are discard estimates for recent years only. Moreover, the years for which Portuguese estimates are available are only a subset of those with Spanish estimates. Two runs of the model are performed; one assuming zero discards and another incorporating discards. When discards are incorporated, estimated recruitment and fishing mortality for young (discarded) ages increase, resulting in lower values of the biological reference points Fmax and F0.1 and, generally, more optimistic future stock trajectories under F-reduction scenarios.


2014 ◽  
Vol 5 (1) ◽  
pp. 79-105 ◽  
Author(s):  
Colleen M. Fisher ◽  
Michael G. Lee ◽  
Chu-Ting Chung ◽  
Bruce A. Center

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guy Moshe Ross

Purpose This research aims to test focus of attention effects in risky choice. Design/methodology/approach As opposed to traditional aspiration-level theory, the shifting-focus concept introduces a second reference point, the survival point, and assumes a shifting focus of attention between the two reference points. In this conceptualization, risk-taking is a function of focus of attention on the survival reference point or the aspiration-level and resources relative to the two reference points. Four randomized controlled studies tested this concept. Findings Study 1 showed that with aspiration focus the probability of choosing a risky option was higher below an aspiration-level than above it. With survival focus, the effect was reversed. Study 2 found that close to the survival reference point, the probability of choosing a risky option was higher with aspiration focus relative to survival focus. Study 3 revealed that with scarce resources the risk taken was higher with aspiration focus than with survival focus, and the scarcer the resources the stronger was the effect. Study 4 demonstrated that with aspiration focus the risk taken was higher below an aspiration-level than above it. With survival focus the effect was reversed. Originality/value In addition to providing support for the validity of the shifting focus concept, this paper elaborates on the theoretical model by providing evidence for moderation effects. Risk-taking was affected by a focus of attention on one of two reference points, and the effect was moderated by resources relative to the two focal points. An advanced model is proposed to capture the effects of focus of attention and resources on risk-taking behavior.


Author(s):  
Rafaela M. Dancygier

This chapter studies candidate selection and election outcomes in English municipalities. It confirms that parties are primarily interested in pursuing votes and think about the ideological repercussion later. In England, ward-level elections allow one to get a sense of how the distribution of Muslim and non-Muslim preferences affects parties' calculations of the anticipated gains and losses that they associate with Muslim inclusion. Studying thousands of ward elections over time, the chapter demonstrates that these calculations significantly influence parties' inclusion decisions. Parties are less likely to put Muslim candidates on the ticket in wards where they anticipate a considerable non-Muslim backlash. However, once the size of the Muslim electorate reaches a critical threshold, inclusion chances rise substantially.


2021 ◽  
pp. 1-18
Author(s):  
Jie Xu ◽  
Jian Lv ◽  
Hong-Tai Yang ◽  
Yan-Lai Li

The video conferencing software is regarded as a significant tool for social distancing and getting incorporations up and going. Due to the indeterminacy of epidemic evolution and the multiple criteria, this paper proposes a video conferencing software selection method based on hybrid multi-criteria decision making (HMCDM) under risk and cumulative prospect theory (CPT), in which the criteria values are expressed in various mathematical forms (e.g., real numbers, interval numbers, and linguistic terms) and can be changed with natural states of the epidemic. Initially, the detailed description of video conferencing software selection problem under an epidemic are given. Subsequently, a whole procedure for video conferencing software selection is conducted, the approaches for processing and normalizing the multi-format evaluation values are presented. Furthermore, the expectations provided by DMs under different natural states of the epidemic are considered as the corresponding reference points (RP). Based on this, the matrix of gains and losses is constructed. Then, the prospect values of all criteria and the perceived probabilities of natural states are calculated according to the value function and the weighting function in CPT respectively. Finally, the proposed method is illustrated by an empirical case study, and the comparison analysis and the sensitivity analysis for the loss aversion parameter are conducted to prove the effectiveness and robustness. The results show that considering the psychological characteristics of DMs in selection decision is beneficial to avoid the unacceptable and potential loss risks. This study could provide a useful guideline for managers who intend to select appropriate video conferencing software.


2019 ◽  
Vol 34 (6) ◽  
pp. 1079-1079
Author(s):  
A Olsen ◽  
M Marr ◽  
D De Boer ◽  
E Jackson ◽  
K Mackiewicz Seghete

Abstract Objective Decision-making requires weighing potential gains and losses. Adolescents who have experienced maltreatment may be more sensitive to potential gains or losses than other adolescents. The aim of these analyses was to examine trajectories of decision-making over time in adolescents based on maltreatment history and severity. Method The study included 69 adolescents 13 to 17 years old (M = 14.9). Maltreatment history and severity were assessed using the Childhood Trauma Questionnaire. Adolescents also completed a modified Iowa Gambling Task (mIGT). Outcomes of interest were the percentage of advantageous responses and net score (measure of overall performance integrating advantageous and disadvantageous plays) for each of three blocks. Results The trajectory of performance across blocks was defined using a conditional linear growth curve model with factor loadings fixed at block 1, block 2, and block 3. Greater maltreatment severity was associated with less increase in net score over time (M = -4.453, p < .001). In contrast, abuse severity (M = 6.675, p = .002) and the presence of neglect (M = 13.058, p = .002) were associated with sharper increases in net score. A regression revealed maltreatment severity, presence of abuse, presence of neglect, and abuse severity significantly predicted the percentage of advantageous plays only during the second block of the mIGT (R2 = .180, p = .030). Conclusions This study provides evidence that maltreatment history and severity are associated with the trajectory of decision-making over time. It also provides support for the importance of examining performance trajectory and heterogeneity in maltreatment regarding cognitive processing.


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