Customer's perceived value of waiting time for service events

The authors address the effects of money gain and loss on individually perceived value as predicted by prospect theory in a time gain‐and‐loss context. Three experiments were conducted. Experiment 1 results support the prospect theory concept of value function. According to Experiment 2 results, the amount of money involved exerted different impacts on individual perceptions—specifically, study participants preferred gaining $1 on one occasion to gaining 50 cents over two occasions and preferred losing $1 one time to losing 50 cents twice. Further, the combined results indicate that the study participants held different perceptions of the value of “short time” versus “little money”—that is, they preferred saving an extra 2 minutes on one occasion to saving 1 minute on two occasions and preferred waiting an extra 1 minute two times to waiting an extra 2 minutes one time. Copyright © 2014 John Wiley & Sons, Ltd.     

The use of multiple reference points in risky decision making

Among psychologists and economists, prospect theory continues to be one of the most popular models of decision making. The theory's key property is reference dependence; specifically, how an individual's perception of loss or gain is dependent upon their starting point (i.e., the status quo). Although prospect theory is widely accepted, other authors have sought the inclusion of reference points besides the status quo. Initially these extensions focused on the importance of single reference points such as goals. More recently, authors have explained choice data by including multiple reference points within the value function. Multiple‐reference‐point theories generally assume that many choice situations possess an implicit or explicit goal, or point an individual will strive to obtain, and/or a minimum requirement (i.e., a “lower bound”) above which an individual will strive to stay. In two experiments, we present evidence that individuals can utilize the minimum requirement, status quo, and goal within a single risky decision task. Participants most often chose to maximize their chance of reaching reference points even when that decision was riskier, resulted in lower expected value, resulted in lower expected utility, or ran contrary to the predictions of prospect theory. Furthermore, salience and uncertainty moderated the use of goals and minimum requirements as reference points. Copyright © 2010 John Wiley & Sons, Ltd.     

Features of the Value Function for Voice and Their Consistency across Participants from Four Countries: Great Britain, Mexico, The Netherlands, and the United States

This study investigated features of the value function for voice using subjects from four countries: Great Britain, Mexico, The Netherlands, and the United States. Across these four groups of subjects the shape of the value function was found to be similar, though differences in the estimated reference points were detected. Consistent with predictions derived from prospect theory (Kahneman & Tversky, 1979) the relationship between the value of voice and the magnitude of voice was found to be direct, monotonic, and nonlinear. The largest increment in value occurred when the magnitude of voice shifted from mute to some voice. Thereafter, increments in value tended to decline in magnitude suggesting diminishing marginal returns on the response measure of procedural fairness. An unexpected finding was that the final segment of the value function was convex indicating increasing marginal returns as the magnitude of voice shifted from its penultimate level to its maximum possible level. The study also investigated whether subjects' reported expectations of voice correspond to the value function reference point as theorized in the literature. Findings suggest that self-reported expectations of voice are higher than the estimated value function reference point.     

The Influence of National Culture on the Perceived Fairness of Grading Procedures: A Comparison of the United States and China

Although the desire to be treated fairly is a fundamental human preference, perceptions of fair treatment can be influenced by cultural beliefs and values. For this article, the author used a scenario-based experimental study to examine students' fairness perceptions of grading procedures in 2 countries with distinct national cultures, China and the United States. The results suggest that culture can influence students' perceptions of the fairness of 2 aspects of procedural justice: voice and interpersonal justice. Chinese students were more likely to value interpersonal justice (i.e., being treated with dignity and respect, and being provided with explanations of grading procedures) and perceived the lack of interpersonal justice as less fair than did U.S. participants. In contrast, U.S. students were more likely to perceive voice (i.e., the opportunity to discuss and appeal a grading decision) as fair. These findings are connected to differences in the cultural values of the United States and China.     

Gender and mental health: An examination of procedural justice in a specialized court context

The procedural justice framework has been applied in the criminal justice contexts of policing, corrections, and courts. According to this perspective, fair treatment, respectful dialogue and being given a proper voice will contribute to citizens' positive views of authority figures. While this literature has grown immensely, several questions remain unanswered. Do males and females perceive similar levels of procedural justice? Does mental health status influence perceptions of fair treatment? Whether procedural justice is a general perspective that can be applied across social groupings has important implications for correctional treatment in that programs that truly “work” for all are more cost‐effective. Toward that end, the current study investigates the relationships among procedural justice perceptions, gender, and mental health status in specialized drug courts, a context that has received little empirical attention. We do so using secondary data originally collected between 2003 and 2009 for Rossman, Roman, Zweig, Rempel and Lindquist's Multisite Adult Drug Court Evaluation (MADCE). Results from a full‐sample analysis reveal that women report higher levels of procedural justice; that drug court participation significantly influences procedural justice perceptions; and that depressive symptomology is a significant predictor of procedural justice perceptions. In male‐ and female‐specific subsamples, drug court participation exerts similar effects for males and females, as does depressive symptomology. Implications for theory, research, and practice are discussed.     

Effects of gain—loss frames on satisfaction with self–other outcome-differences

This research concerned satisfaction with outcome-differences (advantageous inequity, equity, or disadvantageous inequity) as a function of the individual's gain or loss frame, other's gain or loss frame, the cooperative or noncooperative nature of the relationship, and their interactions. After reading a scenario, subjects rated on a satisfaction-dissatisfaction scale a series of outcome-pairs providing themselves and another party with outcomes. Consistent with Equity Theory, results showed that gain framed individuals found equity more pleasing than advantageous inequity, which in turn was preferred over disadvantageous inequity, but only when the decision making context was coopera- tive rather than noncooperative. In a noncooperative context, gain framed individuals were as pleased with equity as with advantageous inequity. Contrary to Equity Theory, but consistent with Prospect Theory, loss framed individuals were relatively insensitive to outcome-differences and the nature of the relationship. Results finally suggested that advantageous inequity was preferred less when the other party had a loss rather than gain frame, albeit only under cooperative circumstances.     

Cheating: One common morality for gains and losses but two components of morality itself

Previous studies show that decision makers (DMs) lie more to avoid a loss than achieve a gain. Two compelling mechanisms might explain this observation. One assumes that lying is a risky activity and relates to the shape of the monetary value function described by prospect theory, which assumes (a) increased risk taking for loss frames and (b) an asymmetry between the perceived values of losses and gains. The other relates to the importance of self-esteem functions as expressed in self-concept maintenance models, self-esteem issues being weighed against monetary issues. This alternative explanation assumes that a loss frame serves as a factor lowering moral considerations. We report an experimental study presenting sets of lotteries to DMs, once in a moral context and once in a traditional probabilistic context. The results show that DMs take less risk when lotteries are presented in a moral context. It is also shown that DMs take more risk for losses than gains, this holding for both the moral and probabilistic contexts. This latter result suggests that loss/gain asymmetry can be completely explained by prospect theory factors, and framing makes no difference to the valuing of moral considerations.     

The influence of involvement on the endowment effect: The moveable value function

The endowment effect is based on the loss aversion built into Prospect Theory's asymmetric value function. This paper posits that the level of consumer involvement with a decision is a moderator of the endowment effect. It is proposed that high involvement increases the slope differential between the loss and gain regions of the value function, enhancing loss aversion. The research further posits that higher involvement is accompanied by higher arousal and cognitive processing which produces stronger negativity in thoughts. The argument for these effects is discussed in the context of evolutionary theory. We conclude that consumers are more loss averse in high versus low involvement conditions.     

基于预期理论的风险决策的神经机制

预期理论基于对期望效用理论的批判与发展,提出了价值函数与权重函数,对以往风险决策研究中所发现的现象进行了很好的预测与解释。预期理论的核心概念包括参照依赖、损失规避与权重函数。基于预期理论的一些决策偏差包括框架效应、禀赋效应和默认偏差也部分揭示了与人们风险决策有关的脑区。近年来,通过采用功能性核磁共振等脑成像手段对预期理论的一些核心成分进行的研究表明,涉及到人们风险决策的脑区主要有前额叶、纹状体、脑岛与杏仁核。未来的研究可以从预期理论的产生根源、个体发展以及遗传基因等角度进行进一步的探讨。     

Risk and rationality: the influence of decision domain and perceived outcome control on managers' high‐risk decisions

The issue of when managers will undertake different forms and amounts of risk in their new business creation decisions is still not fully understood. To address one facet of this issue, this paper advances the proposition that decision domain and perceived outcome control interact to impact managers' new‐product introduction decisions. Employing a causal method, a nested experimental design and indicators of risk's probability of loss and magnitude of loss elements, the study's results demonstrate that the manager's level of perceived outcome control combines with decision domain to determine subsequent levels of risk taking that are specific to each element of risk. Implications for theory, including prospect theory, and practice, especially firms wanting to pursue today's high‐risk new‐economy based initiatives, are discussed. Copyright © 2002 John Wiley & Sons, Ltd.     

INFINITE REGRESS ARGUMENTS

Abstract

Gerald Cohen's critique of John Rawls's theory of justice is that it is concerned only with the justice of social institutions, and must thus arbitrarily draw a line between those inequalities excluded and those allowed by the basic structure. Cohen claims that a proper concern with the interests of the least advantaged would rule out ‘incentives’ for ‘talented’ individuals. I argue that Rawls's assumption that the subject of justice is the basic structure of society does not arbitrarily restrict the concerns of political justice, as Cohen claims. Further, I argue that it does not allow ‘deep’ inequalities within a just basic structure. When properly understood, Rawls's theory of justice is strongly egalitarian, taken as a theory of fairness in the way the burdens and benefits of social cooperation are distributed, even if it is not as egalitarian as Cohen wishes.     

Complexity effects on the children's gambling task

The children's gambling task (CGT [Kerr, A., & Zelazo, P. D. (2004). Development of “Hot” executive function: The children's gambling task. Brain and Cognition, 55, 148–157]) involves integrating information about losses and gains to maximize winnings when selecting cards from two decks. Both cognitive complexity and control (CCC) theory and relational complexity (RC) theory attribute younger children's difficulty to task complexity. In CCC theory, identification of the advantageous deck requires formulation of a higher-order rule so that gains and losses can be considered in contradistinction. According to RC theory, it entails processing the ternary relation linking three variables (deck, magnitude of gain, magnitude of loss). We designed two less complex binary-relational versions in which either loss or gain varied across decks, with the other held constant. The three closely matched versions were administered to 3–5-year-olds. Consistent with complexity explanations, children in all age groups selected cards from the advantageous deck in the binary-relational versions, but only 5-year-olds did so on the ternary-relational CGT.     

Satisficing when buying information

In two studies expected value, expected utility, and satisficing approaches to one's decision to buy information were compared. The task for the first study was to judge the maximum worth of information by bidding to reduce an ambiguous prospect to a risky one when given an option between a risky prospect and an ambiguous one. A within-subjects design was used in which, for the risky prospect, the probability of gain and expected value were varied. The results were inconsistent with both expected value and expected utility models, but were consistent with a satisficing strategy. The second study was similar to the first but with context changes in the stimuli and a slightly different decision task. The results showed that the effects are robust across task and context. The main behavioral effect is that people appear more willing to buy information that may decrease an expected loss than information that may increase an expected gain. A decision justification principle is consistent with that effect.     

APPLYING UNCERTAINTY MANAGEMENT THEORY TO EMPLOYEE VOICE BEHAVIOR: AN INTEGRATIVE INVESTIGATION

Drawing on uncertainty management theory, this study integrates justice research with the elaboration likelihood model and considers employee voice behavior as a function of 3 (interpersonal, procedural, and distributive) facets of justice perceptions in combination. Specifically, a positive relationship is hypothesized between interpersonal justice and employee voice behavior, which is buffered by high procedural justice. This 2‐way interaction effect is also examined to determine whether it would be mitigated by low distributive justice. Results from a sample of 395 manager–employee dyads provide support for these predictions. Furthermore, results from a supplementary analysis show that the 3‐way interaction effect on employee voice behavior was more pronounced for those who had a high feeling of uncertainty (i.e., those with a shorter job tenure or occupational tenure). Theoretical and practical implications of the findings are discussed.     

Perspectives,Perceptions, and Risk-Taking Behavior

Several organizational researchers have recently argued that the propositions of Kahneman and Tversky's (1979) prospect theory are in conflict with commonly held notions of risk taking for opportunities and risk aversion for threats. This investigation was an attempt to empirically separate threat and opportunity perceptions from loss and gain perspectives. Experiment 1 (N= 244) revealed that most decision makers, faced with a traditional framing problem, perceived the risky alternative as an opportunity when they were in the loss domain, but perceived it as a threat when they were in the gain domain. Experiment 2 showed that framing the same (loss and gain) problems as threats versus opportunities influenced risk taking, such that management students (N= 84) were more risk taking for opportunity-framed problems and risk averse for threat-framed problems. At the same time, the students took more risks for the loss problem than for the gain problem. We conclude that threat and opportunity perceptions are theoretically and empirically distinguishable from loss and gain perspectives.     

Need for Cognition Moderates Responses to Framed Smoking‐Cessation Messages1

Smoking‐cessation messages usually emphasize the costs of continuing to smoke (loss‐framed). However, prospect theory suggests that messages that instead emphasize the benefits of quitting smoking (gain‐framed) could be more effective than loss‐framed messages because smoking cessation is likely viewed as a cancer‐prevention behavior with a certain rather than a risky outcome. In this study, smokers at public events read brochures containing brief gain‐ or loss‐framed smoking‐cessation messages. The influence of framing was moderated by participants' need for cognition (NFC). Individuals lower in NFC had greater intention to quit after reading a gain‐framed message than after reading a loss‐framed message a finding consistent with our predictions whereas framing did not affect the persuasiveness of messages among people higher in NFC.     

Roots and correlates of perceived injustice in the division of family work

Abstract This study provides a comprehensive test of the distributive justice framework to explain justice evaluations of the division of family work. Using data of 632 dual‐earner couples with young children from 3 European countries, the analyses provided good support for the distributive justice framework. The frequency with which spouses compared each other's amounts of family work, the outcome of the comparison of the husband's family work with the family work performed by other men, and the extent to which the partner appreciated one's family work proved to be most predictive of justice evaluations. Notably, the evidence supports the model equally for women and men and for justice evaluations of the divisions of domestic work and child care.     

The influence of national culture on the perceived fairness of grading procedures: a comparison of the United States and China

Although the desire to be treated fairly is a fundamental human preference, perceptions of fair treatment can be influenced by cultural beliefs and values. For this article, the author used a scenario-based experimental study to examine students' fairness perceptions of grading procedures in 2 countries with distinct national cultures, China and the United States. The results suggest that culture can influence students' perceptions of the fairness of 2 aspects of procedural justice: voice and interpersonal justice. Chinese students were more likely to value interpersonal justice (i.e., being treated with dignity and respect, and being provided with explanations of grading procedures) and perceived the lack of interpersonal justice as less fair than did U.S. participants. In contrast, U.S. students were more likely to perceive voice (i.e., the opportunity to discuss and appeal a grading decision) as fair. These findings are connected to differences in the cultural values of the United States and China.     

决策的三参照点理论:从原理到应用

三参照点理论(Tri-Reference Point Theory,Wang,2008a; Wang& Johnson,2012)以底线、现状和目标为参照点,将决策结果空间划分为失败、损失、获益和成功4个功能区域.根据3个参照点的心理权重的排序:底线＞目标＞现状,该模型继而推导出跨越不同区域的以现状为分界的双S-型的价值函数,以及据此产生的对于跨越不同参照点的预期结果的偏好转换、和损失-获益及失败-成功的两种不对称性.总之,风险决策的基本任务在于,在使得达到目标的可能性最大化的同时使底线不保的可能性最小化.三参照点理论将统计学和金融学中的均值与方差(均差)分析与行为决策研究中的参照点效应有机地结合在一起;在面对不同的风险选项时,通过分析各个预期结果的均差分布与3个参照点之间的关系作出适应性的决策.本文介绍了三参照点理论的基本推论、运行原则、实证检验、以及它与期望效用理论和前景理论相比较的异同之处.同时我们也探讨了三参照点理论对实践中管理决策的指导意义和多重启示.