From group diffusion to ratio bias: Effects of denominator and numerator salience on intuitive risk and likelihood judgments
AbstractThe group-diffusion effect is the tendency for people to judge themselves to be less likely to experience a negative outcome as the total number of people exposed to the threat increases --- even when the probability of the outcome is explicitly presented (Yamaguchi, 1998). In Experiment 1 we replicated this effect for two health threat scenarios using a variant of Yamaguchi's original experimental paradigm. In Experiment 2, we showed that people also judge themselves to be less likely to be selected in a lottery as the number of people playing the lottery increases. In Experiment 3, we showed that explicitly presenting the number of people expected to be selected eliminates the group-diffusion effect, and in Experiment 4 we showed that presenting the number expected to be affected by a health threat without presenting the total number exposed to the threat produces a reverse effect. We propose, therefore, that the group-diffusion effect is related to the ratio bias. Both effects occur when people make risk or likelihood judgments based on information presented as a ratio. The difference is that the group-diffusion effect occurs when the denominator of the relevant ratio is more salient than the numerator, while the ratio bias occurs when the numerator is more salient than the denominator.
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Bibliographic InfoArticle provided by Society for Judgment and Decision Making in its journal Judgment and Decision Making.
Volume (Year): 4 (2009)
Issue (Month): 6 (October)
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risk judgment; probability judgment; group-diffusion effect; ratio bias.;
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- Danny Weathers & Scott Swain & Jay Carlson, 2012. "Why consumers respond differently to absolute versus percentage descriptions of quantities," Marketing Letters, Springer, Springer, vol. 23(4), pages 943-957, December.
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