Choice set, relative income, and inequity aversion: An experimental investigation

He, Hui; Wu, Keyu

doi:10.1016/j.joep.2016.04.002

Cited by 11 publications

(10 citation statements)

References 63 publications

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“…Furthermore, research has studied information search and decision choices due to variations in choice-set sizes among people from different age groups ( He and Wu, 2016 ). Results suggest that younger and older adults are relatively similar in how they searched for information and make subsequent choices when faced with two-option problems; however, information search and subsequent choice are different between younger and older adults when the choice-set size increases ( Frey et al, 2015 ).…”

Section: Introductionmentioning

confidence: 99%

“…Results suggest that younger and older adults are relatively similar in how they searched for information and make subsequent choices when faced with two-option problems; however, information search and subsequent choice are different between younger and older adults when the choice-set size increases ( Frey et al, 2015 ). Another study has investigated how choice-set size influenced people’s preferences that were indicative of inequity aversion ( He and Wu, 2016 ). These researchers found that inequity aversion was influenced by choice-set size and that that the variance in inequity aversion increased with the range of choice sets.…”

Section: Introductionmentioning

confidence: 99%

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Influence of an Intermediate Option on the Description-Experience Gap and Information Search

2018

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Research shows that people tend to overweight small probabilities in description and underweight them in experience, thereby leading to a different pattern of choices between description and experience; a phenomenon known as the Description-Experience (DE) gap. However, little is known on how the addition of an intermediate option and contextual framing influences the DE gap and people’s search strategies. This paper tests the effects of an intermediate option and contextual framing on the DE gap and people’s search strategies, where problems require search for information before a consequential choice. In the first experiment, 120 participants made choice decisions across investment problems that differed in the absence or presence of an intermediate option. Results showed that adding an intermediate option did not reduce the DE gap on the maximizing option across a majority of problems. There were a large majority of choices for the intermediate option. Furthermore, there was an increase in switching between options due to the presence of the intermediate option. In the second experiment, 160 participants made choice decisions in problems like those presented in experiment 1; however, problems lacked the investment framing. Results replicated findings from the first experiment and showed a similar DE gap on the maximizing option in a majority of problems in both the absence and presence of the intermediate option. Again, there were a large majority of choices for the intermediate option. Also, there was an increase in switching between options due to the presence of the intermediate option. Meta-analyses revealed that the absence or presence of the intermediate option created certain differences in the strength of frequency and recency processes. Also, a single natural-mean heuristic model was able to account for the experimental results across both experiments. We discuss implications of our findings to consequential decisions made after information search.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Influence of an Intermediate Option on the Description-Experience Gap and Information Search

2018

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“…Therefore, the inequity list is robust to changes to the list's parameters. This constitutes an improvement upon the methodology proposed by Yang et al (2016), which is sensitive to changes in the values of their lists, as pointed out by He and Wu (2016). Perhaps the robustness of our measure stems from using several data points to calculate F&S parameters with our methodology, as opposed to only one switching point with Yang et al's (2016) methodology.…”

Section: Robustness Checksmentioning

confidence: 78%

“…List 1 was the inequity list presented in the previous Section. Lists 2 and 3 were modifications to List 1 in the spirit of He and Wu (2016). List 2 consisted of a change in the income inequality relative to own payoff by subtracting $10 from all payoffs in List 1, i.e., a reduction for both individuals (i and j).…”

Section: Lists and Gamesmentioning

confidence: 99%

Estimating social preferences using stated satisfaction: Novel support for inequity aversion

Diaz

Houser

Ifcher

et al. 2023

European Economic Review

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“…An analysis restricted to patients with low baseline scores for the study in the domain of cognitive function showed a superior performance of the relative approach than the absolute approach (Zhang et al, 2015). Moreover, to control the choice sets and relative income inequity between players improves the measurement accuracy of inequity aversion preference (He and Wu, 2016). Plus, the prior online purchasing experience sometimes is very important, but for the post-usage usefulness is not much helpful.…”

Section: Research Methods and Definition Of The Problemmentioning

confidence: 99%

The relative decision-making algorithm for ranking data

Chen

2020

DTA

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PurposeDecision-making is always an issue that managers have to deal with. Keenly observing to different preferences of the targets provides useful information for decision-makers who do not require too much information to make decisions. The main purpose is to avoid decision-makers in a dilemma because of too much or opaque information. Based on problem-oriented, this research aims to help decision-makers to develop a macro-vision strategy that fits the needs of different clusters of customers in terms of their favorite restaurants. This research also focuses on providing the rules to rank data sets for decision-makers to make choices for their favorite restaurant.Design/methodology/approachWhen the decision-makers need to rethink a new strategic planning, they have to think about whether they want to retain or rebuild their relationship with the old consumers or continue to care for new customers. Furthermore, many of the lecturers show that the relative concept will be more effective than the absolute one. Therefore, based on rough set theory, this research proposes an algorithm of related concepts and sends questionnaires to verify the efficiency of the algorithm.FindingsBy feeding the relative order of calculating the ranking rules, we find that it will be more efficient to deal with the faced problems.Originality/valueThe algorithm proposed in this research is applied to the ranking data of food. This research proves that the algorithm is practical and has the potential to reveal important patterns in the data set.

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Choice set, relative income, and inequity aversion: An experimental investigation

Cited by 11 publications

References 63 publications

Influence of an Intermediate Option on the Description-Experience Gap and Information Search

Influence of an Intermediate Option on the Description-Experience Gap and Information Search

Estimating social preferences using stated satisfaction: Novel support for inequity aversion

The relative decision-making algorithm for ranking data

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