Carryover of domain-dependent risk preferences in a novel decision-making task

Abstract

We investigated whether people’s risk taking tendency established in one domain (gains or losses) carries over to the other domain. Participants played a game in which they made repeated decisions between a fixed payoff and a risky option, where the outcome of the risky option depended on whether they had responded correctly on a difficult perceptual-memory task. In some trials, participants played to gain points; on others, they played to avoid losing points. In two studies, we observed the following pattern of results. 1) Participants risked less on gain trials than on loss trials. 2) This difference in risk taking persisted (carried over) when the domain changed from gains to losses and vice versa (with the effect of experiencing losses first being stronger than the effect of experiencing gains first). 3) There was no analogous carryover effect on responses to a delay discounting measure, but there was a carryover effect on responses on a risk attitude measure. We compare these results with those from other recent studies and discuss various ways of explaining them.

Keywords

• risk preferences
• delay discounting
• carry-over