Past decisions do affect future choices: An experimental demonstration
This paper demonstrates experimentally that the mere fact that an alternative was chosen in the past increases the likelihood that it will be re-chosen in the future, when new alternatives are being offered. The experimental design consists of a new variation of the free-choice paradigm that is immune to Chen and Risen’s (2010) criticism of how results have been interpreted in previous studies of post-decision effects. An additional experiment indicates that once participants have chosen a particular alternative they view its characteristics more positively. I suggest that the new design can be used to study various aspects of the effect of past decisions on future ones. In the present paper, I apply it to show that the allocation of limited resources among various uses may be biased in favor of a particular use if it was preferred to another in a previous situation.
Volume (Year): 121 (2013)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/locate/obhdp|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ritov, Ilana & Baron, Jonathan, 1992. " Status-Quo and Omission Biases," Journal of Risk and Uncertainty, Springer, vol. 5(1), pages 49-61, February.
- Knetsch, Jack L, 1989. "The Endowment Effect and Evidence of Nonreversible Indifference Curves," American Economic Review, American Economic Association, vol. 79(5), pages 1277-84, December.
- M. Keith Chen, 2008.
"Rationalization and Cognitive Dissonance: Do Choices Affect or Reflect Preferences?,"
Cowles Foundation Discussion Papers
1669, Cowles Foundation for Research in Economics, Yale University.
- M. Keith Chen, 2008. "Rationalization and Cognitive Dissonance: Do Choices Affect or Reflect Preferences?," Levine's Working Paper Archive 122247000000002336, David K. Levine.
- Keith M. Marzilli Ericson & Andreas Fuster, 2011. "Expectations as Endowments: Evidence on Reference-Dependent Preferences from Exchange and Valuation Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 126(4), pages 1879-1907.
- Russo, J. Edward & Medvec, Victoria Husted & Meloy, Margaret G., 1996. "The Distortion of Information during Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 66(1), pages 102-110, April.
- Samuelson, William & Zeckhauser, Richard, 1988. " Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
When requesting a correction, please mention this item's handle: RePEc:eee:jobhdp:v:121:y:2013:i:2:p:267-277. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.