BEHAVIORAL CONTRAST IN A TWO‐OPTION ANALOGUE TASK OF FINANCIAL DECISION MAKING

BEHAVIORAL CONTRAST IN A TWO‐OPTION ANALOGUE TASK OF FINANCIAL DECISION MAKING The effects of an alternative course of action on sustained escalation and persistence in the face of failure was investigated using a computerized stock investment task. Subjects invested in “stock” in two “markets” that yielded returns according to two‐component multiple variable‐interval schedules. Both markets yielded equal but intermittent return rates during the first phase. In the second phase, one market ceased to yield returns, while the return rate for the other market was unchanged. During the second phase, behavioral contrast effects were evident. Investing in the market that ceased to yield returns dropped precipitously, and investing in the unchanged market increased significantly. Although the behavior may be economically “irrational,” it is predictable from the matching law and shows that interactions among a history of intermittent returns in a course of action, current return rate, and currently available alternative courses of action are important determinants of persisting in, or withdrawing from, a failing course of action. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Behavior Analysis Wiley

BEHAVIORAL CONTRAST IN A TWO‐OPTION ANALOGUE TASK OF FINANCIAL DECISION MAKING

Loading next page...
 
/lp/wiley/behavioral-contrast-in-a-two-option-analogue-task-of-financial-WUA0x5okVC
Publisher
Wiley
Copyright
1994 Society for the Experimental Analysis of Behavior
ISSN
0021-8855
eISSN
1938-3703
DOI
10.1901/jaba.1994.27-607
Publisher site
See Article on Publisher Site

Abstract

The effects of an alternative course of action on sustained escalation and persistence in the face of failure was investigated using a computerized stock investment task. Subjects invested in “stock” in two “markets” that yielded returns according to two‐component multiple variable‐interval schedules. Both markets yielded equal but intermittent return rates during the first phase. In the second phase, one market ceased to yield returns, while the return rate for the other market was unchanged. During the second phase, behavioral contrast effects were evident. Investing in the market that ceased to yield returns dropped precipitously, and investing in the unchanged market increased significantly. Although the behavior may be economically “irrational,” it is predictable from the matching law and shows that interactions among a history of intermittent returns in a course of action, current return rate, and currently available alternative courses of action are important determinants of persisting in, or withdrawing from, a failing course of action.

Journal

Journal of Applied Behavior AnalysisWiley

Published: Dec 1, 1994

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month