We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Asymmetric discounting of gains and losses: A query theory account.
- Authors
Appelt, Kirstin; Hardisty, David; Weber, Elke
- Abstract
People discount delayed gains (where the default is to receive a smaller gain sooner) more than accelerated gains (where the default is to receive a larger gain later). For losses, the pattern reverses-people discount delayed losses less than accelerated losses. In Study 1, confirming a Query Theory process account, this sign by direction interaction is mediated by the prominence of thoughts in favor of the default. Thoughts in favor of the smaller, sooner amount are more prominent in delay scenarios than acceleration scenarios, and this increases discounting for gains and decreases discounting for losses. Study 2 confirms the causal role of the order of option consideration. Participants considering thoughts in the natural order (pro-default thoughts first) replicate the sign by direction interaction, whereas participants considering thoughts in the opposite, unnatural order (pro-alternative thoughts first) do not. Reversing the order of option consideration eliminates the sign by direction interaction.
- Subjects
DISCOUNT prices; GAIN recognition; REVENUE accounting; BUSINESS losses; DEFAULT (Finance)
- Publication
Journal of Risk & Uncertainty, 2011, Vol 43, Issue 2, p107
- ISSN
0895-5646
- Publication type
Article
- DOI
10.1007/s11166-011-9125-1