The impact of (social) anchors on Prospect Theory's value function

Sebastian Krull; David D. Loschelder; Matthias Pelster

doi:10.1016/j.qref.2024.101916

The impact of (social) anchors on Prospect Theory's value function

Sebastian Krull^*
, David D. Loschelder
, Matthias Pelster

^*Korrespondierende/r Autor/-in für diese Arbeit

Professur für Wirtschafts-, Sozialpsychologie & Methoden

Publikation: Beiträge in Zeitschriften › Zeitschriftenaufsätze › Forschung › Begutachtung

4 Zitate (Scopus)

Abstract

Anchoring impacts risk-taking decisions. This paper provides experimental evidence (n = 744) that (social) anchors shift the Prospect Theory's value function (Kahneman and Tversky, 1979; Tversky and Kahneman, 1992). We observe that extreme (social) anchors lead to shifts in the value function, indicating a change in risk-taking. Anchors that are in line with risk-averse (risk-seeking) behavior lead, relative to the baseline, to more risk-averse (risk-seeking) decisions. Our findings are similar for social and non-social environments.

Originalsprache	Englisch
Aufsatznummer	101916
Zeitschrift	Quarterly Review of Economics and Finance
Jahrgang	98
Seitenumfang	11
ISSN	1062-9769
DOIs	https://doi.org/10.1016/j.qref.2024.101916
Publikationsstatus	Erschienen - 01.12.2024

Bibliographische Notiz

Publisher Copyright:
© 2024 The Author(s)

Fachgebiete und Schlagwörter

Wirtschaftspsychologie
Betriebswirtschaftslehre

ASJC Scopus Sachgebiete

Finanzwesen
Volkswirtschaftslehre und Ökonometrie

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10.1016/j.qref.2024.101916Lizenz: CC BY

Data: The impact of (social) anchors on Prospect Theory’s value function
Loschelder, D. D. (Mitwirkende), Pelster, M. (Urheber*in) & Krull, S. (Mitwirkende), Mendeley Data, 04.09.2024
DOI: 10.17632/jsmrw6dth7, https://data.mendeley.com/datasets/jsmrw6dth7
Datensatz

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title = "The impact of (social) anchors on Prospect Theory's value function",

abstract = "Anchoring impacts risk-taking decisions. This paper provides experimental evidence (n = 744) that (social) anchors shift the Prospect Theory's value function (Kahneman and Tversky, 1979; Tversky and Kahneman, 1992). We observe that extreme (social) anchors lead to shifts in the value function, indicating a change in risk-taking. Anchors that are in line with risk-averse (risk-seeking) behavior lead, relative to the baseline, to more risk-averse (risk-seeking) decisions. Our findings are similar for social and non-social environments.",

keywords = "Anchoring, Decisions under risk, Peer effects, Risk-taking, Social interactions, Business psychology, Management studies",

author = "Sebastian Krull and Loschelder, \{David D.\} and Matthias Pelster",

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AU - Krull, Sebastian

AU - Loschelder, David D.

AU - Pelster, Matthias

PY - 2024/12/1

Y1 - 2024/12/1

N2 - Anchoring impacts risk-taking decisions. This paper provides experimental evidence (n = 744) that (social) anchors shift the Prospect Theory's value function (Kahneman and Tversky, 1979; Tversky and Kahneman, 1992). We observe that extreme (social) anchors lead to shifts in the value function, indicating a change in risk-taking. Anchors that are in line with risk-averse (risk-seeking) behavior lead, relative to the baseline, to more risk-averse (risk-seeking) decisions. Our findings are similar for social and non-social environments.

AB - Anchoring impacts risk-taking decisions. This paper provides experimental evidence (n = 744) that (social) anchors shift the Prospect Theory's value function (Kahneman and Tversky, 1979; Tversky and Kahneman, 1992). We observe that extreme (social) anchors lead to shifts in the value function, indicating a change in risk-taking. Anchors that are in line with risk-averse (risk-seeking) behavior lead, relative to the baseline, to more risk-averse (risk-seeking) decisions. Our findings are similar for social and non-social environments.

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KW - Decisions under risk

KW - Peer effects

KW - Risk-taking

KW - Social interactions

KW - Business psychology

KW - Management studies

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DO - 10.1016/j.qref.2024.101916

M3 - Journal articles

AN - SCOPUS:85203144824

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VL - 98

JO - Quarterly Review of Economics and Finance

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The impact of (social) anchors on Prospect Theory's value function

Abstract

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Data: The impact of (social) anchors on Prospect Theory’s value function

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