Choice by value encoding and value construction: processes of loss aversion

Loss aversion and reference dependence are 2 keystones of behavioral theories of choice, but little is known about their underlying cognitive processes. We suggest an additional account for loss aversion that supplements the current account of the value encoding of attributes as gains or losses relative to a reference point, introducing a value construction account. Value construction suggests that loss aversion results from biased evaluations during information search and comparison processes. We develop hypotheses that identify the influence of both accounts and examine process-tracing data for evidence. Our data suggest that loss aversion is the result of the initial direct encoding of losses that leads to the subsequent process of directional comparisons distorting attribute valuations and the final choice.     

Criteria instability and the isolated option effect

In two-stage choices, decision makers often compare a new (isolated) option with the winner from the first stage. Previous research has identified a choice advantage for an isolated option, ostensibly due to loss aversion. We propose an alternative mechanism suggesting that instability of the criteria used in each choice stage is the main driver of the isolated option effect. Results from a series of experiments support the criteria instability account and not loss aversion as the explanation for the isolated option effect.     

Power and loss aversion

Four experiments tested the prediction that power reduces loss aversion by increasing the anticipated value of gains and shrinking the negative anticipated value of losses. Experiment 1 provided initial support for the prediction that those in power are less loss averse by replicating a classic paradigm of loss aversion in riskless choice and demonstrating moderation by power. Experiments 2 and 3 expanded on this finding by breaking apart the components of loss aversion to determine how power may reduce it: via gains, losses, or both. Across two scenarios and two different measures of anticipated value, power reduced the anticipated threat associated with a loss. However, the prediction that power increases the anticipated value of gains was not supported. Finally, Experiment 4 replicated the results of Experiments 2 and 3 in the context of a choice with real consequences for the participants. Implications of these findings are discussed.     

Loss aversion,diminishing sensitivity,and the effect of experience on repeated decisions

Three experiments are presented that explore the assertion that loss aversion and diminishing sensitivity drive the effect of experience on choice behavior. The experiments are focused on repeated choice tasks where decision makers choose repeatedly between alternatives and get feedback after each choice. Experiments 1a and 1b show that behavioral tendencies that were previously interpreted as indications of loss aversion in decisions from experience are better described as products of diminishing sensitivity to absolute payoffs. Experiment 2 highlights a nominal magnitude effect: A decrease in the magnitude of the nominal payoffs eliminates the evidence for diminishing sensitivity. These and related previous results can be captured with a model that assumes reliance on small samples of subjective experiences, and an increase in diminishing sensitivity with payoff variability. Copyright © 2008 John Wiley & Sons, Ltd.     

Social transmission of food preferences in Japanese monkeys (Macaca fuscata) after mere exposure or aversion training

In Experiment 1, 3 mother-child pairs of Japanese monkeys (Macaca fuscata) were given simultaneous choice tests between raisins and popcorn. The mothers and offspring showed different choice patterns. Cofeeding opportunities were then alternated with individual choice tests. In Experiment 2,2 other pairs were added. Each animal was again offered simultaneous choice tests between marshmallows and almonds. Food aversion conditioning was used to create different choice patterns for mothers and offspring. After cofeeding and choice tests, the differences in choice patterns disappeared in both experiments. The changes after contact with the other's eating pattern during cofeeding was as follows: foods consumed by either came to be eaten by both; foods consumed by both continued to be eaten by both; and foods consumed by neither continued to be ignored. The results provide evidence for social transmission of food preferences in this species.     

Taste aversions conditioned by the aversiveness of insulin and formalin: role of CS specificity

Experimenters in the past have reported that when insulin is used as the unconditioned stimulus (US), rats will learn an aversion to a sodium chloride but not a sucrose solution, whereas with formalin as the US, they will learn an aversion to a sucrose but not a saline solution. The present experiments failed to confirm these findings. Aversions to sucrose were conditioned with insulin and aversions to sodium chloride were conditioned with formalin. The use of a more concentrated sucrose solution in the present study may have been responsible for the successful sucrose-aversion conditioning with insulin. Although the source of the discrepancy in findings concerning aversion conditioning with formalin remains unclear, experiments ruled out numerous possibilities. These experiments also showed that sodium chloride aversion conditioning with formalin is a highly robust phenomenon that occurs with a variety of conditioned stimulus durations and formalin doses, with distributed and massed training, in male and female rats, and even if saline is not the only novel solution presented during conditioning. Furthermore, the aversion can be detected with both single-stimulus and choice test procedures.     

不同类型罪犯在爱荷华赌博任务中的决策功能缺陷

采用爱荷华赌博任务(Behcara等人1994年版本)测量了8类共222名在监男性罪犯以及32名普通男性的决策功能, 并运用前景效用学习模型分析了不同类型罪犯在情感决策中的心理功能缺陷。罪犯组选择牌1的比例与控制组没有显著差异, 选择牌2的比例显著高于控制组, 选择牌3和牌4的比例显著低于控制组。暴力犯和涉黑犯对收益和损失都不敏感, 对过去的预期效用折扣很快; 吸毒犯(已戒除)、涉毒犯、盗窃犯和抢劫犯对奖赏加工正常, 对惩罚不敏感; 经济犯选择一致性最低; 性罪犯选择一致性最高。结果表明不同类型罪犯在爱荷华赌博任务中都具有决策功能缺陷, 但他们的决策功能缺陷由不同的心理功能缺陷所致。     

Interoceptive ability predicts aversion to losses

Emotions have been proposed to inform risky decision-making through the influence of affective physiological responses on subjective value. The ability to perceive internal body states, or “interoception” may influence this relationship. Here, we examined whether interoception predicts participants' degree of loss aversion, which has been previously linked to choice-related arousal responses. Participants performed both a heartbeat-detection task indexing interoception and a risky monetary decision-making task, from which loss aversion, risk attitudes and choice consistency were parametrically measured. Interoceptive ability correlated selectively with loss aversion and was unrelated to the other value parameters. This finding suggests that specific and separable component processes underlying valuation are shaped not only by our physiological responses, as shown in previous findings, but also by our interoceptive access to such signals.     

The Phantom Decoy Effect in Perceptual Decision Making

A phantom decoy is an alternative that is superior to another “target” option but is unavailable at the time of choice. In value‐based decisions involving phantom decoys (e.g., consumer choices), individuals often show increased preference for the similar, inferior target option over a non‐dominated competitor alternative. Unlike value‐based decisions that are driven by subjective goals, perceptual decisions typically have an outside criterion that defines the goal of the task (e.g., target is present or absent). Despite their obvious differences, past research has documented a number of commonalities between both types of decisions. In a set of three experiments, we examine the influence of phantom options on simple perceptual decisions and point out a critical difference between perceptual and value‐based decisions. Our results show that in perceptual choice, participants prefer competitor options to target options, the opposite of the pattern typically found in consumer choice. We use the results of the experiments to examine the predictions of four different models of context effects including loss aversion and dynamic, preference accumulation models. We find that accumulation models provide the best explanation for our results as well as being able to generalize to other context effects. Copyright © 2015 John Wiley & Sons, Ltd.     

Dissociable effects of basolateral amygdala lesions on decision making biases in rats when loss or gain is emphasized

Individuals switch from risk seeking to risk aversion when mathematically identical options are described in terms of loss versus gains, as exemplified in the reflection and framing effects. Determining the neurobiology underlying such cognitive biases could inform our understanding of decision making in health and disease. Although reports vary, data using human subjects have implicated the amygdala in such biases. Animal models enable more detailed investigation of neurobiological mechanisms. We therefore tested whether basolateral amygdala (BLA) lesions would affect risk preference for gains or losses in rats. Choices in both paradigms were always between options of equal expected value—a guaranteed outcome, or the 50:50 chance of double or nothing. In the loss-chasing task, most rats exhibited strong risk seeking preferences, gambling at the risk of incurring double the penalty, regardless of the size of the guaranteed loss. In the betting task, the majority of animals were equivocal in their choice, irrespective of bet size; however, a wager-sensitive subgroup progressively shifted away from the uncertain option as the bet size increased, which is reminiscent of risk aversion. BLA lesions increased preference for the smaller guaranteed loss in the loss-chasing task, without affecting choice on the betting task, which is indicative of reduced risk seeking for losses, but intact risk aversion for gains. These data support the hypothesis that the amygdala plays a more prominent role in choice biases related to losses. Given the importance of the amygdala in representing negative affect, the aversive emotional reaction to loss, rather than aberrant estimations of probability or loss magnitude, may underlie risk seeking for losses.     

Capuchin monkeys (Cebus apella) are sensitive to others’ reward: an experimental analysis of food-choice for conspecifics

The issue whether non-human primates have other-regarding preference and/or inequity aversion has been under debate. We investigated whether tufted capuchin monkeys are sensitive to others’ reward in various experimental food sharing settings. Two monkeys faced each other. The operator monkey chose one of two food containers placed between the participants, each containing a food item for him/herself and another for the recipient. The recipient passively received either high- or low-value food depending on the operator’s choice, whereas the operator obtained the same food regardless of his/her choice. The recipients were either the highest- or lowest-ranking member of the group, and the operators were middle-ranking. In Experiment 1, the operators chose the high-value food for the subordinate recipient more frequently than when there was no recipient, whereas they were indifferent in their choice for the dominant. This differentiated behavior could have been because the dominant recipient frequently ate the low-value food. In Experiment 2, we increased the difference in the value of the two food items so that both recipients would reject the low-value food. The results were the same as in Experiment 1. In Experiment 3, we placed an opaque screen in front of the recipient to examine effects of visual contact between the participants. The operators’ food choice generally shifted toward providing the low-value food for the recipient. These results suggest that capuchins are clearly sensitive to others’ reward and that they show other-regarding preference or a form of inequity aversion depending upon the recipients and the presence of visual contact.     

Asymmetric preferences for road safety: Evidence from a stated choice experiment among car drivers

Recent research has proposed fitting responses from discrete choice experiments to asymmetric value functions consistent with prospect theory, taking into account respondents’ reference points in their valuation of choice attributes. Previous studies have mainly concentrated on travel time and cost attributes, while evidence regarding road safety attributes is very limited.This paper investigates the implicit utility of a road safety attribute, defined as the number of casualties per year in alternative car trip choices, when safety improves or deteriorates. Using appropriate statistical tests we are able to reject symmetric preferences for losses and gains in the level of safety and estimate a sigmoid value function that exhibits loss aversion and diminishing sensitivity. This adds an interesting psychological dimension to the preference of road safety. Possible implications of this finding for policy making are discussed.     

Risky choice as a function of amount and variance in food supply.

In Experiment 1, 4 rats earned their daily food ration by choosing on a trials basis between a "risky" and a "riskless" lever. The risky lever produced either 15 45-mg food pellets or no pellets, and on average provided five pellets per choice. The riskless lever always produced three pellets. Across conditions, the number of trials per session was varied. Body weight and choice of the risky lever decreased as the number of trials per session decreased, even though body weight could only be defended by increased choice of the risky lever. In Experiment 2, trials per session were fixed, but the number of pellets delivered by the risky and riskless levers was either at the same level as in Experiment 1 or tripled from those levels. Now choice of the risky lever was inversely related to the size of reinforcement and to body weight. The results of these experiments show that risk aversion covaries with the amount of food available in a session and the daily variance in the amount of food earned.     

Task formats and ambiguity aversion

This paper proposes that task format (choosing or rejecting) moderates the effect of ambiguity aversion. Specifically, an ambiguous option is more attractive in a choosing task than in a rejecting task compared with a risky option. The author performed three experiments to test the propositions. In the first experiment, participants showed less ambiguity aversion when they had to choose a preferred option (risky or ambiguous) compared with when they had to reject an option they preferred less. In the second experiment with a monetary incentive, participants had to form a cash‐equivalent estimate for both a risky gamble and an ambiguous gamble in a traditional Ellsberg scenario. The ambiguous option emerged as more attractive than the risky option in the choosing task compared with the rejecting task. The third experiment showed that the participants' decision rationale mediated the effect of the task format on choice. These three experiments support the proposition that task formats moderate the effect of ambiguity aversion. On the basis of the findings, the author provides suggestions for practice and further research. Copyright © 2010 John Wiley & Sons, Ltd.     

Delay discounting of monetary gains and losses in adolescents with ADHD: Contribution of delay aversion to choice

Adolescents with attention-deficit/hyperactivity disorder (ADHD) are known to have stronger preferences for smaller immediate rewards over larger delayed rewards in delay discounting tasks than their peers, which has been argued to reflect delay aversion. Here, participants performed a delay discounting task with gains and losses. In this latter condition, participants were asked whether they were willing to wait in order to lose less money. Following the core assumption of the delay aversion model that individuals with ADHD have a general aversion to delay, one would predict adolescents with ADHD to avoid waiting in both conditions. Adolescents (12–17 years) with ADHD (n = 29) and controls (n = 28) made choices between smaller immediate and larger delayed gains, and between larger immediate and smaller delayed losses. All delays (5–25 s) and gains/losses (2–10 cents) were experienced. In addition to an area under the curve approach, a mixed-model analysis was conducted to disentangle the contributions of delay duration and immediate gain/delayed loss amount to choice. The ADHD group chose the immediate option more often than controls in the gain condition, but not in the loss condition. The contribution of delay duration to immediate choices was stronger for the ADHD group than the control group in the gain condition only. In addition, the ADHD group scored higher on self-reported delay aversion, and delay aversion was associated with delay sensitivity in the gain condition, but not in the loss condition. In sum, we found no clear evidence for a general aversion to delay in adolescents with ADHD.     

Discrimination of functionally appropriate and inappropriate throwing tools by captive tufted capuchins (<Emphasis Type="Italic">Cebus apella</Emphasis>)

A tool-throwing task was used to test whether capuchin monkeys understand the difference between functionally appropriate and functionally inappropriate tools. A group of monkeys was trained to obtain a sticky treat from a container outside their enclosure using a projectile attached to one end of an anchored line. Subsequently, these monkeys were given choice tests between functional and nonfunctional versions of tools used in training. A different feature of the tool was varied between alternatives in each choice test. The monkeys chose to use functional tools significantly more often than nonfunctional tools in early exposures to each choice test. A second experiment tested whether these subjects, as well as a second group of minimally trained participants, could distinguish between functional and nonfunctional tools that appeared different from those used in training. A new set of design features was varied between tools in these choice tests. All participants continued to choose functional tools significantly more often than nonfunctional tools, regardless of their tool-throwing experience or the novel appearance of the tools. These results suggest that capuchin monkeys, like chimpanzees studied in similar experiments, are sensitive to a variety of functionally relevant tool features.     

Food choice in rats (Rattus norvegicus): the effect of exposure to a poisoned conspecific

Three experiments were conducted to examine the effects of exposure to a poisoned conspecific on subsequent food aversion in rats. In Experiment 1A, rats that had been aversively conditioned to a cocoa-flavored food were exposed to a poisoned conspecific that had eaten the same food. On the subsequent choice test, the animals increased their aversion to that food. These results were reconfirmed in Experiment 1B, in which a cinnamon-flavored food was used as the stimulus. In Experiment 2, subjects were first exposed to a poisoned conspecific and then conditioned to the food which the conspecific had eaten. On the test, they showed no sign of increased aversion to that food.     

Rhesus monkeys lack a consistent peak-end effect

In humans, the order of receiving sequential rewards can significantly influence the overall subjective utility of an outcome. For example, people subjectively rate receiving a large reward by itself significantly higher than receiving the same large reward followed by a smaller one (Do, Rupert, & Wolford, 2008). This result is called the peak-end effect. A comparative analysis of order effects can help determine the generality of such effects across primates, and we therefore examined the influence of reward-quality order on decision making in three rhesus macaque monkeys (Macaca mulatta). When given the choice between a high-low reward sequence and a low-high sequence, all three monkeys preferred receiving the high-value reward first. Follow-up experiments showed that for two of the three monkeys their choices depended specifically on reward-quality order and could not be accounted for by delay discounting. These results provide evidence for the influence of outcome order on decision making in rhesus monkeys. Unlike humans, who usually discount choices when a low-value reward comes last, rhesus monkeys show no such peak-end effect.