The impact of (social) anchors on Prospect Theory's value function

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

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Anchoring impacts risk-taking decisions. This paper provides experimental evidence (n = 744) that (social) anchors shift the Prospect Theory's value function (Kahneman and Tversky, 1979; Tversky and Kahneman, 1992). We observe that extreme (social) anchors lead to shifts in the value function, indicating a change in risk-taking. Anchors that are in line with risk-averse (risk-seeking) behavior lead, relative to the baseline, to more risk-averse (risk-seeking) decisions. Our findings are similar for social and non-social environments.

OriginalspracheEnglisch
Aufsatznummer101916
ZeitschriftQuarterly Review of Economics and Finance
Jahrgang98
Anzahl der Seiten11
ISSN1062-9769
DOIs
PublikationsstatusErschienen - 01.12.2024

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