HOW MULTIPLE REFERENCE POINTS INFLUENCE MANAGERS' POST-DECISIONAL REGRET

2007 ◽  
Vol 35 (4) ◽  
pp. 487-498 ◽  
Author(s):  
Wen-Hsien Huang ◽  
Li-Jung Tseng
Keyword(s):  
Decision Making ◽  
Social Comparison ◽  
Reference Point ◽  
Reference Points ◽  
Sales Managers ◽  
Temporal Comparison ◽  
Expected Outcome ◽  
Standard Information ◽  
Multiple Reference ◽  
Decisional Regret

Although regret is the most relevant emotion in the domain of decision making, research addressing the regrets of managers and how these are influenced by multiple reference points is lacking. In the context of a choice set with more than 2 alternatives, this study demonstrates that sales managers evaluated their postdecisional regrets based on three reference points: the best-performing unchosen outcome, the worst-performing unchosen outcome, and their expected outcome. The first 2 are social comparison-based standards and the last is a temporal comparison-based standard. Managers equally favored social comparison and temporal standard information when assessing their postdecisional regrets. In addition, it was found that the feeling of regret was largely influenced by a loss or gain relative to each reference point rather than by the degree of loss or gain.

scholarly journals Reference-dependent preferences arise from structure learning

2018 ◽  
Author(s):  
Lindsay E. Hunter ◽  
Samuel J. Gershman
Keyword(s):  
Decision Making ◽  
Reference Point ◽  
Structure Learning ◽  
Reference Points ◽  
Risk Averse ◽  
Decision Making Under Risk ◽  
Common Assumption ◽  
Expected Outcome ◽  
Systematic Effects ◽  
Reference Dependent Preferences

AbstractModern theories of decision making emphasize the reference-dependency of decision making under risk. In particular, people tend to be risk-averse for outcomes greater than their reference point, and risk-seeking for outcomes less than their reference point. A key question is where reference points come from. A common assumption is that reference points correspond to expectations about outcomes, but it is unclear whether people rely on a single global expectation, or multiple local expectations. If the latter, how do people determine which expectation to apply in a particular situation? We argue that people discover reference points using a form of Bayesian structure learning, which partitions outcomes into distinct contexts, each with its own reference point corresponding to the expected outcome in that context. Consistent with this theory, we show experimentally that dramatic change in the distribution of outcomes can induce the discovery of a new reference point, with systematic effects on risk preferences. By contrast, when changes are gradual, a single reference point is continuously updated.

scholarly journals Dynamic Hybrid Multiple Attribute Decision-Making Problem Based on Reference Point Adaptation

2019 ◽  
Vol 2019 ◽  
pp. 1-8
Author(s):  
Wei-Min Ma ◽  
Hui Zhang ◽  
Bing-Zhen Sun ◽  
Neng-Li Wang ◽  
Hai-Yan Zhao
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Reference Point ◽  
Multiple Attribute Decision Making ◽  
Optimal Choice ◽  
Reference Points ◽  
Decision Makers ◽  
Multiple Attribute ◽  
Decision Making Problem ◽  
Dynamic Hybrid

Individuals’ decision-making depends on reference points in prospect theory. This research considers the bounded rationality of decision makers and constructs a dynamic hybrid multiple attribute decision-making (DHMADM) model. Unlike existing models, the DHMADM model focuses on dynamic reference point, which has been proven in prospect theory. This research presents the effects of reference point adaptation on decision-making through model calculation. The optimal choice of decision makers changed with the change of the reference point in the DHMADM model. By experiment, we found that the DHMADM model considering reference point adaptation can more accurately express the final choice of decision makers than models only considering the static reference point.

Impact of aborted sudden cardiac death on survivors and their spouses: the phenomenon of different reference points

1995 ◽  
Vol 4 (5) ◽  
pp. 389-396 ◽  
Author(s):  
ND Doolittle ◽  
MJ Sauve
Keyword(s):  
Decision Making ◽  
Sudden Cardiac Death ◽  
Longitudinal Studies ◽  
Reference Point ◽  
Cardiac Death ◽  
Phenomenological Study ◽  
Qualitative Interviews ◽  
Reference Points ◽  
Emotional Recovery

BACKGROUND: Although anecdotal data suggest that spouses of aborted sudden cardiac death survivors become enmeshed in the physical and emotional recovery of their mates, few longitudinal studies address the personal struggle of aborted sudden cardiac death survivors and their spouses during recovery. OBJECTIVE: To identify and explore phenomena experienced by aborted sudden cardiac death survivors and their spouses, and to determine implications for care. METHODS: This was a phenomenological study; qualitative interviews were conducted within 3 weeks of aborted sudden cardiac death and continued through 24 weeks after arrest at 6- to 8-week intervals. A total of 180 interviews were conducted with 40 survivors and 30 spouses. Interviews were tape-recorded, transcribed, and analyzed for recurrent themes. RESULTS: For the spouses the point of focus, or reference point, for future decision making was the arrest; for the survivors the reference point was prearrest life. These different reference points led to different concerns between spouses and survivors, from which spousal protectiveness and entrapment emerged. CONCLUSIONS: Acknowledgment of different reference points is essential in planning interventions for aborted sudden cardiac death survivors and their spouses. This population must be encouraged to express their questions, concerns, and fears early. Differences in perspectives should be identified to avoid troubled communication and conflicts.

Cognitive Reflection Effects on Time Discounting

2018 ◽  
Vol 39 (2) ◽  
pp. 99-106 ◽  
Author(s):  
Michał Białek ◽  
Przemysław Sawicki
Keyword(s):  
Individual Differences ◽  
Individual Difference ◽  
Delay Discounting ◽  
Reference Point ◽  
Reference Points ◽  
Cognitive Reflection Test ◽  
Process Information ◽  
Time Discounting ◽  
Cognitive Reflection ◽  
The Way

Abstract. In this work, we investigated individual differences in cognitive reflection effects on delay discounting – a preference for smaller sooner over larger later payoff. People are claimed to prefer more these alternatives they considered first – so-called reference point – over the alternatives they considered later. Cognitive reflection affects the way individuals process information, with less reflective individuals relying predominantly on the first information they consider, thus, being more susceptible to reference points as compared to more reflective individuals. In Experiment 1, we confirmed that individuals who scored high on the Cognitive Reflection Test discount less strongly than less reflective individuals, but we also show that such individuals are less susceptible to imposed reference points. Experiment 2 replicated these findings additionally providing evidence that cognitive reflection predicts discounting strength and (in)dependency to reference points over and above individual difference in numeracy.

Multiple reference points in pay satisfaction assessments

1997 ◽  
Author(s):  
Lisa Ordonez ◽  
Terry Connolly ◽  
Richard Coughlan
Keyword(s):  
Reference Points ◽  
Pay Satisfaction ◽  
Multiple Reference
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