Effects of expectations interactions on decision making under risk : an empirical approach
This paper experimentally investigates the effects of expectations interactions on risk-taking behavior. Additionally, we also examine how different types of expectation interactions (wins, losses, and near-misses) affect one’s risk-taking behavior at varying psychological distances. This is done th...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2017
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/70397 |
| _version_ | 1826124401161011200 |
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| author | Ho, Sian Nee Zhou, Zi Yi Ong, Kuan Keong |
| author2 | Yohanes Eko Riyanto |
| author_facet | Yohanes Eko Riyanto Ho, Sian Nee Zhou, Zi Yi Ong, Kuan Keong |
| author_sort | Ho, Sian Nee |
| collection | NTU |
| description | This paper experimentally investigates the effects of expectations interactions on risk-taking behavior. Additionally, we also examine how different types of expectation interactions (wins, losses, and near-misses) affect one’s risk-taking behavior at varying psychological distances. This is done through conducting 2 experiments: a real experiment where participants themselves stand to win money, and a thought experiment where participants place themselves in the shoes of others.
We find that at close psychological distances, expectation interactions influences participants when the type of expectation interactions (wins, losses, and near-misses) runs counter to the initial expectations of participants. At further psychological distances, expectations interactions influences participants when they observe an unambiguous outcome (for example, losses as opposed to near- Misses) that guides them in a clear direction. Given that we are the first to empirically study the effects of near misses in expectations interactions, future research can build on our findings by exploring varies forms of near misses, or varying the complexities of experimental games introduced. |
| first_indexed | 2024-10-01T06:20:02Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/70397 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:20:02Z |
| publishDate | 2017 |
| record_format | dspace |
| spelling | ntu-10356/703972019-12-10T12:17:44Z Effects of expectations interactions on decision making under risk : an empirical approach Ho, Sian Nee Zhou, Zi Yi Ong, Kuan Keong Yohanes Eko Riyanto School of Humanities and Social Sciences DRNTU::Humanities This paper experimentally investigates the effects of expectations interactions on risk-taking behavior. Additionally, we also examine how different types of expectation interactions (wins, losses, and near-misses) affect one’s risk-taking behavior at varying psychological distances. This is done through conducting 2 experiments: a real experiment where participants themselves stand to win money, and a thought experiment where participants place themselves in the shoes of others. We find that at close psychological distances, expectation interactions influences participants when the type of expectation interactions (wins, losses, and near-misses) runs counter to the initial expectations of participants. At further psychological distances, expectations interactions influences participants when they observe an unambiguous outcome (for example, losses as opposed to near- Misses) that guides them in a clear direction. Given that we are the first to empirically study the effects of near misses in expectations interactions, future research can build on our findings by exploring varies forms of near misses, or varying the complexities of experimental games introduced. Bachelor of Arts 2017-04-24T01:40:26Z 2017-04-24T01:40:26Z 2017 Final Year Project (FYP) http://hdl.handle.net/10356/70397 en Nanyang Technological University 46 p. application/pdf |
| spellingShingle | DRNTU::Humanities Ho, Sian Nee Zhou, Zi Yi Ong, Kuan Keong Effects of expectations interactions on decision making under risk : an empirical approach |
| title | Effects of expectations interactions on decision making under risk : an empirical approach |
| title_full | Effects of expectations interactions on decision making under risk : an empirical approach |
| title_fullStr | Effects of expectations interactions on decision making under risk : an empirical approach |
| title_full_unstemmed | Effects of expectations interactions on decision making under risk : an empirical approach |
| title_short | Effects of expectations interactions on decision making under risk : an empirical approach |
| title_sort | effects of expectations interactions on decision making under risk an empirical approach |
| topic | DRNTU::Humanities |
| url | http://hdl.handle.net/10356/70397 |
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