The Construction of Preference by Paul Slovic, Sarah Lichtenstein

By Paul Slovic, Sarah Lichtenstein

One of many major topics that has emerged from behavioral determination learn in the past 3 many years is the view that people's personal tastes are frequently built within the technique of elicitation. this concept is derived from experiences demonstrating that normatively similar equipment of elicitation (e.g., selection and pricing) supply upward push to systematically various responses.

These choice reversals violate the main of technique invariance that's primary to all theories of rational selection. If diversified elicitation approaches produce assorted orderings of strategies, how can personal tastes be outlined and in what feel do they exist?

This ebook exhibits not just the historic roots of choice building but in addition the blossoming of the concept that inside psychology, legislations, advertising, philosophy, environmental coverage, and economics. determination making is now understood to be a hugely contingent kind of details processing, delicate to activity complexity, time strain, reaction mode, framing, reference issues, and different contextual elements.

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The Construction of Preference

One of many major topics that has emerged from behavioral selection study in the past 3 many years is the view that people's personal tastes are usually developed within the strategy of elicitation. this concept is derived from experiences demonstrating that normatively similar equipment of elicitation (e.

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As Kahneman (2003a) has since noted, “This was a large step toward the development of a concept of framing” (p. 727). Framing (Kahneman & Tversky, 1984; Tversky & Kahneman, 1981), that is, the idea that formally inconsequential changes in how options are presented have huge effects on judgments and decisions, is a core element of preference construction. 24 S. Lichtenstein and P. Slovic Perhaps the first explicit discussion of construction in decision making was by Bettman (1979),15 who proposed that choice heuristics may exist only as fragments or elements including beliefs, evaluations, or combination rules, “which are put together constructively at the time of .

This volume, p. 270). Having exposed such coherent arbitrariness, they discussed its implications for financial and labor markets. Contingent valuation is another case in point. For example, Gregory, Lichtenstein, Brown, Peterson, and Slovic (1995) found that people generally agreed on the relative value of 12 proposed environmental improvements but the amount they were willing to pay was strongly influenced by differences in the arbitrary “budget units” they were asked to use to express their responses.

231). In defense of this position he cited only the experiment by Cox and Grether (1996) discussed earlier. For all the discussion among economists of the power of markets to enforce consistency, they have rarely looked to the literature in marketing or behavioral finance for confirmation of this belief. Were they to do so, they would find considerable evidence of preference lability, including, for example, context effects on in-store purchases that are quite similar to preference reversals (Doyle, O ’Connor, Reynolds, & Bottomley, 1999).

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