IDEAS home Printed from https://ideas.repec.org/a/kap/jrisku/v70y2025i3d10.1007_s11166-025-09454-w.html
   My bibliography  Save this article

Trend dominance

Author

Listed:
  • Markus Prior

    (Princeton University)

  • Talbot M. Andrews

    (Cornell University)

Abstract

People prefer for things to get better over time when evaluating series of outcomes presented in graphs, even at the expense of substantial overall welfare. We refer to this empirical regularity as trend dominance, and demonstrate it across domains including economic growth, environmental outcomes, and the COVID vaccine rollout. We apply a succinct measurement instrument to empirically calibrate trend dominance, characterizing individual-level variation in how much total welfare individuals sacrifice in exchange for increasing trends. Across several experiments conducted on a NORC probability sample as well as convenience samples, we present evidence that trend dominance does not reflect genuine preferences. Trend dominance is, at least in part, a product of respondents struggling to identify the total benefits presented in a sequence and assuming trends continue beyond the plotted sequence. Media organizations, policymakers, and public health authorities routinely use sequence plots to illustrate forecasts and projections, but people’s evaluations of these charts often do not reflect preferences. If people internalize these (ill-considered) evaluations, or if the evaluations bias their behavior, the significance of these distortions extends to affecting behavior directly. Designers of graphs should take into account the biases people bring to visual presentations of over-time data.

Suggested Citation

  • Markus Prior & Talbot M. Andrews, 2025. "Trend dominance," Journal of Risk and Uncertainty, Springer, vol. 70(3), pages 249-273, June.
  • Handle: RePEc:kap:jrisku:v:70:y:2025:i:3:d:10.1007_s11166-025-09454-w
    DOI: 10.1007/s11166-025-09454-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11166-025-09454-w
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11166-025-09454-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. N. W. Smith & H. Joffe, 2009. "Climate change in the British press: the role of the visual," Journal of Risk Research, Taylor & Francis Journals, vol. 12(5), pages 647-663, July.
    2. David J. Hardisty & Katherine F. Thompson & David H. Krantz & Elke U. Weber, 2013. "How to measure time preferences: An experimental comparison of three methods," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(3), pages 236-249, May.
    3. Steffen Andersen & Glenn Harrison & Morten Lau & E. Rutström, 2009. "Elicitation using multiple price list formats," Experimental Economics, Springer;Economic Science Association, vol. 12(3), pages 365-366, September.
    4. Armin Falk & Anke Becker & Thomas Dohmen & David Huffman & Uwe Sunde, 2023. "The Preference Survey Module: A Validated Instrument for Measuring Risk, Time, and Social Preferences," Management Science, INFORMS, vol. 69(4), pages 1935-1950, April.
    5. repec:cup:judgdm:v:8:y:2013:i:3:p:236-249 is not listed on IDEAS
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Loewenstein, George, 1987. "Anticipation and the Valuation of Delayed Consumption," Economic Journal, Royal Economic Society, vol. 97(387), pages 666-684, September.
    8. Shane Frederick & George Loewenstein, 2008. "Conflicting motives in evaluations of sequences," Journal of Risk and Uncertainty, Springer, vol. 37(2), pages 221-235, December.
    9. Berns, Gregory S. & Loewenstein, George & Laibson, David I., 2007. "Intertemporal Choice - Toward an Integrative Framework," Scholarly Articles 4554332, Harvard University Department of Economics.
    10. Andrew Healy & Gabriel S. Lenz, 2014. "Substituting the End for the Whole: Why Voters Respond Primarily to the Election‐Year Economy," American Journal of Political Science, John Wiley & Sons, vol. 58(1), pages 31-47, January.
    11. Hardisty, David J. & Thompson, Katherine F. & Krantz, David H. & Weber, Elke U., 2013. "How to measure time preferences: An experimental comparison of three methods," Judgment and Decision Making, Cambridge University Press, vol. 8(3), pages 236-249, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Faralla, Valeria & Novarese, Marco & Ardizzone, Antonella, 2017. "Framing Effects in Intertemporal Choice: A Nudge Experiment," MPRA Paper 82086, University Library of Munich, Germany.
    2. Mohammed Abdellaoui & Han Bleichrodt & Olivier l'Haridon & Corina Paraschiv, 2013. "Is There One Unifying Concept of Utility?An Experimental Comparison of Utility Under Risk and Utility Over Time," Management Science, INFORMS, vol. 59(9), pages 2153-2169, September.
    3. Armouti-Hansen, Jesper & Kops, Christopher, 2024. "Managing anticipation and reference-dependent choice," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    4. Giles W Story & Ivo Vlaev & Peter Dayan & Ben Seymour & Ara Darzi & Raymond J Dolan, 2015. "Anticipation and Choice Heuristics in the Dynamic Consumption of Pain Relief," PLOS Computational Biology, Public Library of Science, vol. 11(3), pages 1-32, March.
    5. G. T. Lumpkin & Keith H. Brigham, 2011. "Long–Term Orientation and Intertemporal Choice in Family Firms," Entrepreneurship Theory and Practice, , vol. 35(6), pages 1149-1169, November.
    6. Goytom Abraha Kahsay & Daniel Osberghaus, 2018. "Storm Damage and Risk Preferences: Panel Evidence from Germany," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 301-318, September.
    7. Robin Maximilian Stetzka & Stefan Winter, 2023. "How rational is gambling?," Journal of Economic Surveys, Wiley Blackwell, vol. 37(4), pages 1432-1488, September.
    8. Philip Streich & Jack S. Levy, 2007. "Time Horizons, Discounting, and Intertemporal Choice," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(2), pages 199-226, April.
    9. Manel Baucells & Silvia Bellezza, 2017. "Temporal Profiles of Instant Utility During Anticipation, Event, and Recall," Management Science, INFORMS, vol. 63(3), pages 729-748, March.
    10. Jonathan Chapman & Erik Snowberg & Stephanie Wang & Colin Camerer, 2018. "Loss Attitudes in the U.S. Population: Evidence from Dynamically Optimized Sequential Experimentation (DOSE)," NBER Working Papers 25072, National Bureau of Economic Research, Inc.
    11. Anna Conte & John D. Hey, 2018. "Assessing multiple prior models of behaviour under ambiguity," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 7, pages 169-188, World Scientific Publishing Co. Pte. Ltd..
    12. Géraldine Bocqueho & Marc Deschamps & Jenny Helstroffer & Julien Jacob & Majlinda Joxhe & Ofce Observatoire Français Des Conjonctures Économiques, 2018. "The risk and refugee migration," SciencePo Working papers Main hal-03607866, HAL.
    13. Arvid Hoffmann & Sam Henry & Nikos Kalogeras, 2013. "Aspirations as reference points: an experimental investigation of risk behavior over time," Theory and Decision, Springer, vol. 75(2), pages 193-210, August.
    14. Voltaire, Louinord & Donfouet, Hermann Pythagore Pierre & Pirrone, Claudio & Larzillière, Agathe, 2017. "Respondent Uncertainty and Ordering Effect on Willingness to Pay for Salt Marsh Conservation in the Brest Roadstead (France)," Ecological Economics, Elsevier, vol. 137(C), pages 47-55.
    15. Patrick DeJarnette & David Dillenberger & Daniel Gottlieb & Pietro Ortoleva, 2020. "Time Lotteries and Stochastic Impatience," Econometrica, Econometric Society, vol. 88(2), pages 619-656, March.
    16. Kai Barron, 2021. "Belief updating: does the ‘good-news, bad-news’ asymmetry extend to purely financial domains?," Experimental Economics, Springer;Economic Science Association, vol. 24(1), pages 31-58, March.
    17. Petraud, Jean & Boucher, Stephen & Carter, Michael, 2015. "Competing theories of risk preferences and the demand for crop insurance: Experimental evidence from Peru," 2015 Conference, August 9-14, 2015, Milan, Italy 211383, International Association of Agricultural Economists.
    18. Francesco Bogliacino & Cristiano Codagnone & Giuseppe Alessandro Veltri & Amitav Chakravarti & Pietro Ortoleva & George Gaskell & Andriy Ivchenko & Francisco Lupiáñez-Villanueva & Francesco Mureddu & , 2015. "Pathos & Ethos: Emotions and Willingness to Pay for Tobacco Products," PLOS ONE, Public Library of Science, vol. 10(10), pages 1-25, October.
    19. Sautua, Santiago I., 2023. "Disentangling the influences of positive reciprocity and mood on gift exchange at work," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 102(C).
    20. Edoardo Grillo, 2014. "Reference Dependence and Politicians' Credibility," Carlo Alberto Notebooks 353, Collegio Carlo Alberto.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jrisku:v:70:y:2025:i:3:d:10.1007_s11166-025-09454-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.