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Attentional shifts and preference reversals: An eye-tracking study

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  • Alós-Ferrer, Carlos
  • Jaudas, Alexander
  • Ritschel, Alexander

Abstract

The classic preference reversal phenomenon, where monetary evaluations contradict risky choices, has been argued to arise due to a focus on outcomes during the evaluation of alternatives, leading to overpricing of long-shot options. Such an explanation makes the implicit assumption that attentional shifts drive the phenomenon. We conducted an eye-tracking study to causally test this hypothesis by comparing a treatment based on cardinal, monetary evaluations with a different treatment avoiding a monetary frame. We find a significant treatment effect in the form of a shift in attention toward outcomes (relative to probabilities) when evaluations are monetary. Our evidence suggests that attentional shifts resulting from the monetary frame of evaluations are a driver of preference reversals.

Suggested Citation

  • Alós-Ferrer, Carlos & Jaudas, Alexander & Ritschel, Alexander, 2021. "Attentional shifts and preference reversals: An eye-tracking study," Judgment and Decision Making, Cambridge University Press, vol. 16(1), pages 57-93, January.
    • Handle: RePEc:cup:judgdm:v:16:y:2021:i:1:p:57-93_4
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