| Abstract: | It was previously shown and was here replicated that the amount of money required to induce a subject to exchange one gamble for a second and then the second for a third depends on the second (intermediate) gamble. This path dependency cannot be explained by any of the algebraic models (including SEU), nor can it be explained as a simple attention effect. A model was put forward which explains the effect in terms of differential masking depending on a kind of stimulus—response compatibility. The effect of response mode on path dependency was examined in this study; similarity judgements showed no consistent path dependency nor did difference in rated attractiveness of gambles presented in pairs, but rated attractiveness was different for gambles presented singly. Since it might be that monetary response emphasises the monetary aspects, that is, the winning amount of the gamble, it was thought that a probability response would emphasise the probability of winning. However, when subjects were asked to set the probability of winning $ 12 which would induce them to exchange one gamble for another, not only was no path dependency observed, but the subjects' responses seemed to depend only on the difference in expected value of the gambles. This suggests the possibility of developing response-display modes which would eliminate or at least attenuate the inconsistencies observed in risky decision processes. |
