The Construction of Preference

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Dedication......Page 7
Contents......Page 9
Contributors......Page 13
Preface......Page 17
Acknowledgments......Page 19
1 The Construction of Preference: An Overview......Page 21
Overview of This Chapter......Page 22
The Start of Preference Reversals......Page 24
Economists\' Reactions to Preference Reversals......Page 26
Changing the Task......Page 28
Do Economists Now Accept Preference Reversals?......Page 31
The Blossoming of Preference Reversals......Page 32
Psychological Theories of Preference Reversals......Page 34
What Causes Preference Reversals Between P Bets and $ Bets?......Page 40
Antecedents of Preference Construction......Page 42
Evidence of Preference Construction......Page 44
Theories of Preference Construction......Page 46
Affect and Reason......Page 48
Miswanting......Page 50
Contingent Valuation......Page 52
Managing Your Own Preferences......Page 54
Using Tools To Manage Your Preferences......Page 56
Managing the Preferences of Other People......Page 57
Concluding Remarks......Page 59
2 Relative Importance of Probabilities and Payoffs in Risk Taking......Page 61
Descriptive Theories and Constructs......Page 62
Method......Page 63
Results......Page 65
Discussion......Page 69
Acknowledgments......Page 71
3 Reversals of Preference Between Bids and Choices in Gambling Decisions......Page 72
Experiment I......Page 73
Results......Page 74
Experiment II......Page 76
Results......Page 77
Experiment III......Page 78
Results......Page 80
Postexperimental Interviews......Page 82
Discussion......Page 83
Appendix......Page 85
4 Response-Induced Reversals of Preference in Gambling: An Extended Replication in Las Vegas......Page 89
Part 2......Page 90
Excluded Data......Page 93
Reversals......Page 94
Discussion......Page 95
Acknowledgments......Page 96
5 Economic Theory of Choice and the Preference Reversal Phenomenon......Page 97
Economic-Theoretic Hypotheses......Page 99
Psychological-Theoretic Hypotheses......Page 102
Experimental Methods......Page 104
Experimental Design......Page 105
Procedures: Experiment 1......Page 106
Procedures: Experiment 2......Page 108
Experiment 1......Page 109
Experiment 2......Page 110
Conclusion......Page 112
Acknowledgments......Page 113
6 Contingent Weighting in Judgment and Choice......Page 115
Interpersonal Tests......Page 118
Intrapersonal Tests......Page 123
The Compatibility Principle......Page 124
Contingent Tradeoff Models......Page 126
Prediction of Performance......Page 132
Preference Reversals......Page 134
Discussion......Page 139
Acknowledgments......Page 141
7 Cognitive Processes in Preference Reversals......Page 142
 Preference-Reversal Theories......Page 143
Experiment 1: Pricing Versus Choice......Page 144
Procedure......Page 145
Total Time......Page 146
Attention Measures......Page 147
Response Measures......Page 148
RESULTS......Page 149
Predicting Reversals with Process Measures......Page 153
DISCUSSION: EXPERIMENT 1......Page 154
RESULTS......Page 155
Process Differences Between Response Modes......Page 156
Differences Between Reversals and Consistent Responses......Page 157
Predicting Reversals with Process Measures......Page 159
DISCUSSION: EXPERIMENT 2......Page 160
METHOD......Page 161
RESULTS......Page 162
General Discussion......Page 163
Acknowledgments......Page 165
8 The Causes of Preference Reversal......Page 166
Diagnostic Analysis......Page 167
Elicitation Procedures......Page 169
Study 1 (Monetary Bets)......Page 171
Results......Page 172
Discussion......Page 173
Scale Compatibility......Page 175
Study 2 (Time Preferences)......Page 177
General Discussion......Page 178
Acknowledgments......Page 182
9 Preference Reversals Between Joint\rand Separate Evaluations of Options:\rA Review and Theoretical Analysis......Page 183
Experience......Page 185
The Evaluability of an Attribute......Page 186
Evidence for the Preceding Analysis: The Score Study......Page 190
Elaboration......Page 192
Evidence for the Preceding Analysis: Hiring Study and Compact Disc Changer Study......Page 193
JE/SE Reversals for Options From the Same Category and With Explicit Tradeoffs......Page 196
JE/SE Reversals for Options From the Same Category but Without Explicit Tradeoffs......Page 199
JE/SE Reversals for Options From Different Categories......Page 200
Evaluability and Other Explanations for Preference Reversals......Page 203
Implications of the Evaluability Hypothesis......Page 207
Acknowledgments......Page 211
10 Attribute-Task Compatibility as a Determinant of Consumer Preference Reversals......Page 212
Attribute-Task Compatibility and Consumer Preference Reversals......Page 213
Attribute Comparability and Enrichment as Determinants of Consumer Preference Reversals......Page 216
Overview of the Experiments......Page 218
Preference Reversals Involving Options Varying in Price and Brand Quality......Page 219
Preference Reversals with Other Comparable and Enriched Attributes......Page 221
Eliminating the Preference Reversals Using Enriched Price Values or Comparable Quality Values......Page 223
Preference Reversals Between Other Comparison-Based and Separate Evaluation Tasks......Page 225
An Alternative Explanation Based on the Context Dependency or Evaluability of Attributes......Page 227
Differential Attribute Processing in Choice and Purchase Likelihood Ratings......Page 230
Implications of the Preference Reversals for Consumer Attribute Sensitivity in Choice and Ratings......Page 232
Overview of the Findings and Their Theoretical Implications......Page 234
Practical Implications and Directions for Research......Page 237
Acknowledgments......Page 239
The Computational Modeling Approach......Page 240
Choice Process......Page 241
Reversals Between Binary and Triadic Choices......Page 244
Preference Reversals Between Choice and Prices......Page 249
Connections With Neuroscience......Page 252
Conclusions......Page 253
12 Construction of Preferences by Constraint Satisfaction......Page 255
Method......Page 256
Design and Procedure......Page 257
Results......Page 258
Experiment 2......Page 260
Materials, Design, and Procedure......Page 261
Results......Page 262
General Discussion......Page 264
Acknowledgments......Page 265
13 “Coherent Arbitrariness”: Stable Demand\rCurves Without Stable Preferences......Page 266
Experiment 1: Coherently Arbitrary Valuation of Ordinary Products......Page 267
Coherent Arbitrariness......Page 269
Valuation of Novel Pain Experiences......Page 270
Experiment 2: Coherently Arbitrary Valuation of Pain......Page 271
Results......Page 273
Experiment 3: Raising the Stakes......Page 275
Results......Page 276
Experiment 4: Coherently Arbitrary Valuations in the Market......Page 278
Results......Page 280
Experiment 5: The Impact of Multiple Anchors......Page 281
Results......Page 282
Results......Page 284
Contingent Valuation......Page 286
Labor Markets......Page 287
Criminal Deterrence......Page 288
Final Comments......Page 289
Acknowledgments......Page 290
14 Tom Sawyer and the Construction of Value......Page 291
Experiment 1......Page 293
Experiment 2......Page 294
Experiment 3......Page 295
Discussion......Page 298
15 When Web Pages Influence Choice: Effects of Visual Primes on Experts and Novices......Page 302
Theoretical Background......Page 303
Pretest......Page 305
Design......Page 306
Results......Page 307
Experiment 2......Page 310
Method......Page 311
Results and Discussion......Page 312
General Discussion......Page 318
Acknowledgments......Page 319
16 When Choice Is Demotivating: Can One Desire Too Much of a Good Thing?......Page 320
Participants and Experimental Site......Page 322
Product Selection......Page 323
Initial Attractiveness of Selections......Page 324
Discussion......Page 325
Participants......Page 326
Procedures......Page 327
Preliminary Analyses......Page 328
Discussion......Page 329
Study 3......Page 331
Instruments......Page 332
Experimental Procedures......Page 334
Preliminary Analyses......Page 335
Decision-Making Measures......Page 336
Subsequent Satisfaction......Page 337
General Discussion......Page 338
Acknowledgments......Page 342
17 Constructive Consumer Choice Processes......Page 343
Decision Tasks and the Consumer Information Environment......Page 346
Consumer Decision Strategies......Page 347
An Integrated Framework for Constructive Choice Processes......Page 352
A Choice Goals Framework......Page 353
Findings That Our Framework Cannot Fully Explain......Page 356
Some Generalizations From Reviewing Constructive Consumer Choice......Page 358
Assessment of Preferences in a Constructive World......Page 359
Acknowledgments......Page 361
Introduction......Page 362
Decision-Making Phases......Page 363
SDS Theory and Mind-Sets......Page 365
Pre-Editing......Page 366
Existence of Dominance Structures......Page 367
Dominance-Structuring Operations......Page 368
Preferences Versus Choices......Page 369
Dominance Violations and Dominance Structuring......Page 370
Dominance Structuring or Differentiation?......Page 371
SDS Theory and Naturalistic Decision Making......Page 373
Interventions in the External World......Page 374
Acknowledgments......Page 375
19 Pre- and Post-Decision Construction of\rPreferences: Differentiation and Consolidation......Page 376
The Search for Regularities......Page 378
Levels of Decision Making......Page 379
Representation of Decision Alternatives......Page 381
Identifying Decision Alternatives, Goal Elicitation, and Editing......Page 383
Differentiation Leading to a Decision......Page 384
Post-Decision Consolidation......Page 386
Process Studies of Decision Making with a Diff Con Perspective......Page 387
Concluding Remarks......Page 390
Acknowledgments......Page 391
Introduction......Page 392
Choice Bracketing......Page 394
Outcome Editing......Page 395
Joint Versus Separate Evaluation of Alternatives......Page 396
A Review of Bracketing Effects......Page 397
Emergent Properties......Page 398
Adding-Up Effects......Page 402
Taste Change......Page 404
Tradeoffs Across Choices......Page 405
Determinants of Bracketing......Page 409
Is Broad Bracketing Always Better Than Narrow Bracketing?......Page 413
Acknowledgments......Page 415
21 Constructing Preferences From Memory......Page 417
Preferences as Functional Relationships......Page 418
Preferences as Memory (PAM)......Page 419
Interrogating Memory......Page 420
Priming......Page 421
Memory Is Reactive......Page 422
Interference and Inhibition......Page 424
The Structure of Representations......Page 425
Alternative Theories......Page 427
Level of Analysis......Page 428
Significance, Implications, and Applications......Page 429
Acknowledgments......Page 430
Introduction......Page 431
Choice Between Equally Attractive Options......Page 433
Reasons Pro and Con......Page 434
Choice Under Conflict: Seeking Options......Page 437
Choice Under Conflict: Adding Options......Page 439
Definite Versus Disjunctive Reasons......Page 444
Nonvalued Features......Page 449
Concluding Remarks......Page 450
Acknowledgments......Page 452
Background......Page 454
Manipulating Preferences Through Controlled Exposures......Page 457
Evaluability......Page 459
Proportion Dominance......Page 460
Midcourse Summary......Page 463
Judgments of Probability, Relative Frequency, and Risk......Page 465
Further Evidence......Page 467
Manipulation of Affect in Our Daily Lives......Page 469
Failures of the Experiential System: The Case of Smoking......Page 471
Conclusion......Page 472
Acknowledgments......Page 473
The Functions of Affect in Constructing Judgments and Decisions......Page 474
Affect as Information......Page 475
Affect as a Motivator of Behavior......Page 478
Affect as Common Currency......Page 479
How Do You Know It\'s Affect?......Page 480
Individual Differences......Page 481
Experimental Manipulations......Page 482
Acknowledgments......Page 483
The Mere-Repeated-Exposure Phenomenon......Page 484
Absence of Aversive Events as an Unconditioned Stimulus......Page 486
Repeated Experiences as a Source of Positive Affect......Page 487
The Independence of Affect and Cognition......Page 488
Conclusion......Page 489
Acknowledgment......Page 490
26 Introspecting About Reasons Can Reduce Post-Choice Satisfaction......Page 491
Subjects......Page 494
Dependent Measures......Page 495
Post-Choice Satisfaction......Page 497
Moderating Effects of Knowledge About Art......Page 500
Discussion......Page 502
Acknowledgments......Page 505
Introduction......Page 507
Multiple Notions of Utility......Page 509
Some Characteristics of Decision Utility......Page 510
Predicted Utility: do People know What They will Like?......Page 513
Real-Time and Retrospective -- Do People Know What They Have Liked?......Page 516
General Discussion......Page 520
Acknowledgments......Page 523
28 Distinction Bias: Misprediction and Mischoice\rDue to Joint Evaluation......Page 524
Theory......Page 526
Misprediction......Page 528
Method......Page 530
Results and Discussion......Page 531
Method......Page 532
Results and Discussion......Page 533
Mischoice......Page 535
Method......Page 536
Results......Page 538
Discussion......Page 542
Other Evidence for Mischoice......Page 544
Relationship With Evaluability......Page 545
Relationship With Lay Rationalism and Medium Maximization......Page 547
Ways to Improve Predictions and Decisions......Page 548
Implications for Happiness Research......Page 549
Acknowledgments......Page 551
29 Lay Rationalism and Inconsistency Between Predicted Experience and Decision......Page 552
Lay Economism......Page 553
Dinner Set Study......Page 554
Office Study......Page 556
Stereo Study......Page 557
Television Study......Page 559
Castle-Village Study......Page 560
Discussion of Lay Functionalism and Its Relationship With Lay Economism and Scientism......Page 561
Comments on Predicted-Experience-Versus-Decision Inconsistency and Lay Rationalism......Page 562
Other Ways to Study Lay Rationalism......Page 563
Hiring Study......Page 564
Lay Rationalism and Related Literature......Page 565
When Decisions Are Too Hot and When They Are Too Cold......Page 567
Acknowledgments......Page 569
Introduction......Page 570
Imagining the Wrong Event......Page 571
Using the Wrong Theory......Page 572
Misinterpreting Feelings......Page 573
Thinking and Feeling......Page 574
Miswanting Over Time......Page 575
Focalism: The Invisible Future......Page 576
Immune Neglect: The Invisible Shield......Page 578
Conclusions......Page 582
Acknowledgments......Page 583
Introduction......Page 585
Introduction to Valuation......Page 587
The Evaluation Factor......Page 588
Valuation by Prototype and the Scope Problem......Page 592
Context-Dependence and Valuation Reversals......Page 599
The Psychophysics of Valuation......Page 603
Anchoring Effects......Page 607
Applications......Page 610
Concluding Remarks......Page 612
Acknowledgments......Page 613
32 Music, Pandas, and Muggers: On the Affective Psychology of Value......Page 614
Method......Page 616
Results and Discussion......Page 617
Method......Page 618
Results and Discussion......Page 619
Method......Page 620
Results and Discussion......Page 621
Method......Page 622
Relationship With Prior Research on Scope Neglect......Page 623
Complexity of Valuation Processes......Page 624
Implications for Probability Weighting......Page 625
Accounting for Concavity......Page 626
Acknowledgments......Page 628
Introduction......Page 629
The Constructive Nature of Environmental Preferences......Page 631
Desirable Features of an Environmental-Values-Elicitation Approach......Page 634
Criterion 1: Accommodate the Multidimensionality of Value......Page 636
Criterion 4: Separate Facts From Values......Page 637
Criterion 5: Ask the Right Question......Page 638
Using Multiattribute Utility Theory in Resource Valuations......Page 639
Proposed Approach......Page 640
Advantages and Disadvantages of MAUT/CV......Page 643
Other Advantages and Disadvantages......Page 644
Acknowledgments......Page 646
Introduction......Page 649
Stable, Coherent, and Known Preferences......Page 650
Constructive Preferences......Page 651
Defining a Well-Constructed Preference......Page 653
Problem Representation......Page 655
Information Acquisition and Interpretation......Page 660
Information Combination......Page 662
Expression or Mapping of Preferences......Page 664
A More Prominent Role for Sensitivity Analysis......Page 666
Measuring Preferences for Prediction: Context Matching of Information Environments......Page 667
When Is a Building Code Needed?......Page 668
Words of Caution......Page 670
Acknowledgments......Page 672
35 Constructing Preferences From Labile Values......Page 673
Not Knowing What You Want......Page 674
Psychophysics Stream......Page 675
Decision Theory Stream......Page 677
A Philosophy of Science for Reactive Measurement......Page 678
Evaluating Environmental Change, in Which Behavioral Decision Research Appears to Win Many of the Battles Without Winning the…......Page 680
Ranking Risks, in Which Psychological Research May Have Created a Workable Alternative......Page 682
Adolescent Sexuality, in Which Behavioral Research Helps to Create Options in Which Preferences Could Be Constructed and Expr......Page 685
Conclusions......Page 686
36 Informed Consent and the Construction of Values......Page 688
The Value of Consent in Promoting Well-Being and in Promoting Freedom......Page 689
Informed Consent in the Physician-Patient Relationship......Page 690
A Challenge to the Assumption of Existing Preferences......Page 692
Framing Effects and Methods for Eliciting Preferences......Page 694
Perfect, Imperfect, and Pure Procedural Values......Page 697
Procedural Values, Preference Construction, and Contingent Valuation Methods......Page 700
Introduction......Page 702
Existing Evidence......Page 703
Online Survey......Page 705
Conclusion......Page 708
38 Libertarian Paternalism Is Not an Oxymoron......Page 709
The Rationality of Choices......Page 712
Is Paternalism Inevitable?......Page 714
Data and Default Rules......Page 715
Government......Page 716
Default Rules......Page 717
Anchors......Page 718
Framing......Page 719
Explanations......Page 720
Beyond the Inevitable (but Still Libertarian)......Page 721
Costs and Benefits......Page 722
Rules of Thumb......Page 723
Do Choosers Have Informed Preferences?......Page 724
Do Consumers Value Choosing for Themselves, Per Se?......Page 725
Objections......Page 726
Conclusion......Page 727
References......Page 729
Index......Page 795