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The reflection effect in time-related decisions

✍ Scribed by Nobuhide Zushi; Eleonora Curlo; Gloria P. Thomas

Publisher: John Wiley and Sons
Year: 2009
Tongue: English
Weight: 115 KB
Volume: 26
Category: Article
ISSN: 0742-6046
DOI: 10.1002/mar.20300

No coin nor oath required. For personal study only.

✦ Synopsis

Abstract

Despite the intuitive appeal of conceptualizing time as a resource, like money, to which prospect theory should apply, the application of prospect theory to time‐related decisions has met with mixed results. Existing literature has failed repeatedly to find evidence of loss aversion and the characteristic reflection effect in the realm of time, leading researchers to conclude that consumers have an overriding preference for certainty with respect to time, unlike other resources. This article presents evidence to the contrary. Drawing on literature from organizational behavior, the authors posit that consumers' schedules provide the reference points necessary to produce the reflection effect in time‐related decisions. Two experimental studies support this expectation. Potential rationales and limiting conditions are explored. © 2009 Wiley Periodicals, Inc.

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