title: Divergence and Convergence of Risky Decision Making Across Prospective Gains and Losses: Preferences and Strategies.
abstract: People choose differently when facing potential gains than when facing potential losses. Clear gross differences in decision making between gains and losses have been empirically demonstrated in numerous studies (e.g., framing effect, risk preference, loss aversion). However, theories maintain that there are strong underlying connections (e.g., reflection effect). We investigated the relationship between gains and losses decision making, examining risk preferences, and choice strategies (the reliance on option information) using a monetary gamble task with interleaved trials. For risk preferences, participants were on average risk averse in the gains domain and risk neutral/seeking in the losses domain. We specifically tested for a theoretically hypothesized correlation between individual risk preferences across the gains and losses domains (the reflection effect), but found no significant relationship in the predicted direction. Interestingly, despite the lack of reflected risk preferences, cross-domain risk preferences were still informative of individual choice behavior. For choice strategies, in both domains participants relied more heavily on the maximizing strategy than the satisficing strategy, with increased reliance on the maximizing strategy in the losses domain. Additionally, while there is no mathematical reliance between the risk preference and strategy metrics, within both domains there were significant relationships between risk preferences and strategies-the more participants relied upon the maximizing strategy the more risk neutral they were (equating value and utility maximization). These results demonstrate the complexity of gains and losses decision making, indicating the apparent contradiction that their underlying cognitive/neural processes are both dissociable and overlapping.
authors.affiliation: Department of Psychology, National University of Singapore Singapore, Singapore.
authors.forename: Yoanna A
authors.initials: YA
authors.lastname: Kurnianingsih
authors.affiliation: Department of Psychology, National University of SingaporeSingapore, Singapore; Neuroscience and Behavioral Disorders Program, Duke-NUS Graduate Medical SchoolSingapore, Singapore; Singapore Institute for Neurotechnology (SINAPSE), National University of SingaporeSingapore, Singapore.
authors.forename: O'Dhaniel A
authors.initials: OA
authors.lastname: Mullette-Gillman
keywords: decision making; gains; losses; preferences; prospect theory; reflection effect; risk; strategy