scholarly journals Regret in experience-based decisions: The effects of expected value differences and mixed gains and losses.

Decision ◽  
2021 ◽  
Vol 8 (4) ◽  
pp. 277-294
Author(s):  
William M. Hayes ◽  
Douglas H. Wedell
Keyword(s):  
Expected Value ◽  
Value Differences ◽  
Gains And Losses

scholarly journals Regret in Experience-Based Decisions: The Effects of Expected Value Differences and Mixed Gains and Losses

2020 ◽  
Author(s):  
William M. Hayes ◽  
Douglas Wedell
Keyword(s):  
Reinforcement Learning ◽  
Structural Features ◽  
Expected Value ◽  
Online Experiment ◽  
Value Differences ◽  
Mixed Outcomes ◽  
Relative Comparisons ◽  
Gains And Losses ◽  
The Impact

Previous research on experience-based decisions with full feedback supports the idea that people tend to prefer options that minimize the probability of regret. The current study explored whether this preference is modulated by differences in expected value (EV) and the presence or absence of occasional losses. Participants (n = 52) completed an online experiment that involved repeated choices between a safer and a riskier option while receiving full feedback. The riskier option yielded a better outcome on 80% of draws so that choosing it minimized the probability of regret. Preference for the riskier, regret-minimizing option was high when it had the same EV as the safer option and all outcomes were gains, but it decreased when the safer option had a higher EV and when both options included occasional losses. Outcome ratings that were obtained on 50% of trials showed large effects of regret and rejoicing, confirming that participants were sensitive to relative comparisons between obtained and forgone outcomes. Reinforcement-learning modeling indicated that the effects of unequal EVs and mixed outcomes could be accounted for by assuming combined encoding of absolute and relative outcomes and unequal weighting of gains and losses. Overall, these results demonstrate that the impact of regret can be modulated by structural features of the choice environment.

scholarly journals Curiosity or savouring? Information seeking is modulated by both uncertainty and valence

PLoS ONE ◽  
2021 ◽  
Vol 16 (9) ◽  
pp. e0257011
Author(s):  
Lieke L. F. van Lieshout ◽  
Iris J. Traast ◽  
Floris P. de Lange ◽  
Roshan Cools
Keyword(s):  
Information Seeking ◽  
Expected Value ◽  
Bad News ◽  
Positive Information ◽  
Everyday Lives ◽  
Outcome Valence ◽  
Uncertain Outcomes ◽  
Gains And Losses

Curiosity is pervasive in our everyday lives, but we know little about the factors that contribute to this drive. In the current study, we assessed whether curiosity about uncertain outcomes is modulated by the valence of the information, i.e. whether the information is good or bad news. Using a lottery task in which outcome uncertainty, expected value and outcome valence (gain versus loss) were manipulated independently, we found that curiosity is overall higher for gains compared with losses and that curiosity increased with increasing outcome uncertainty for both gains and losses. These effects of uncertainty and valence did not interact, indicating that the motivation to reduce uncertainty and the motivation to maximize positive information represent separate, independent drives.

scholarly journals Curiosity or savouring? Information seeking is modulated by both uncertainty and valence.

2019 ◽  
Author(s):  
Lieke van Lieshout ◽  
Iris Traast ◽  
Floris de Lange ◽  
Roshan Cools
Keyword(s):  
Information Seeking ◽  
Negative Information ◽  
Expected Value ◽  
Bad News ◽  
Positive Information ◽  
World Model ◽  
Outcome Valence ◽  
Underlying Mechanisms ◽  
Uncertain Outcomes ◽  
Gains And Losses

Curiosity is pervasive in our everyday lives, but little is known about its underlying mechanisms. In the current study, we assessed whether curiosity about uncertain outcomes is modulated by the valence of the information, i.e. whether the information is good or bad news. Using a lottery task in which outcome uncertainty, expected value and outcome valence (gain versus loss) were manipulated independently, we found that curiosity is overall higher for gains compared with losses. Surprisingly, curiosity increased with increasing outcome uncertainty for both gains and losses, contradicting models that posit that humans seek positive and avoid negative information. Curiosity thus follows from multiple drives, including a drive to improve our world model, as well as, separately, a drive to maximize positive information.

The Seller's Sense: Buying-Selling Perspective Affects the Sensitivity to Expected Value Differences

2016 ◽  
Vol 30 (2) ◽  
pp. 197-208 ◽  
Author(s):  
Eldad Yechiam ◽  
Taher Abofol ◽  
Thorsten Pachur
Keyword(s):  
Expected Value ◽  
Value Differences

How Children Reason about Gains and Losses: Framing Effects in Judgement and Choice

2005 ◽  
Vol 64 (3) ◽  
pp. 153-171 ◽  
Author(s):  
Anne Schlottmann ◽  
Jane Tring
Keyword(s):  
Framing Effects ◽  
Expected Value ◽  
Risk Averse ◽  
Risk Seeking ◽  
Multiplication Rule ◽  
Irregular Pattern ◽  
Value Judgements ◽  
Potential Losses ◽  
Loss Frame ◽  
Gains And Losses

Three experiments considered how the positive or negative framing of decisions affects children’s EV (expected value) judgements and choices. In Experiment 1, 6- and 9-year-olds chose between a sure gain and a gamble or between a sure loss and a gamble, all with the same EV. Children preferred the sure thing more in the positive than negative frame, as also appears for adults. In Experiment 2, both frames involved potential losses. In their judgements, 6- and 9-year-olds used the normative multiplication rule for integrating risk and amount at risk, with minor frame differences, but when choosing between the same options, they were risk-averse in the save, risk-seeking in the loss frame. In Experiment 3, 5-year-olds used multiplication for saves, with an irregular pattern for losses. Overall, children’s judgements conform closely to normativity. At the same time, children’s choices, like adults’, show non-normative framing effects. This décalage may reflect the involvement of more intuitive processes in judgement than choice.

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