Adrian R. Camilleri

When and why rare events are underweighted: A direct comparison of the sampling, partial feedback, full feedback and description choice paradigms

Two paradigms are commonly used to examine risky choice based on experiential sampling. The feedback paradigm involves a large number of repeated, consequential choices with feedback about the chosen (partial feedback) or chosen and foregone (full feedback) payoffs. The sampling paradigm invites cost-free samples before a single consequential choice. Despite procedural differences, choices in both experience-based paradigms suggest underweighting of rare events relative to their objective probability. This contrasts with overweighting when choice options are described, thereby leading to a ‘gap’ between experience and description-based choice. Behavioural data and model-based analysis from an experiment comparing choices from description, sampling, and partial- and full-feedback paradigms replicated the ‘gap’, but also indicated significant differences between feedback and sampling paradigms. Our results suggest that mere sequential experience of outcomes is insufficient to produce reliable underweighting. We discuss when and why underweighting occurs, and implicate repeated, consequential choice as the critical factor.

Metric and Scale Design as Choice Architecture Tools

Interest is increasing in using behavioral decision insights to design better product labels. A specific policy target is the fuel economy label, which policy makers can use to encourage reduction in carbon dioxide emissions from transport-related fossil-fuel combustion. In two online experiments, the authors examine whether vehicle preferences can be shifted toward more fuel-efficient vehicles by manipulating the metric (consumption of gas vs. cost of gas) and scale (100 miles vs. 15,000 miles vs. 100,000 miles) on which fuel economy information is expressed. They find that preference for fuel-efficient vehicles is highest when fuel economy is expressed in terms of the cost of gas over 100,000 miles, regardless of whether the vehicle pays for its higher price in gas savings. The authors discuss the underlying psychological mechanisms for this finding, including compatibility, anchoring, and familiarity effects, and conclude that policy makers should initiate programs that communicate fuel-efficiency information in terms of costs over an expanded, lifetime scale.

Translated Attributes as Choice Architecture: Aligning Objectives and Choices Through Decision Signposts

Every attribute can be expressed in multiple ways. For example, car fuel economy can be expressed as fuel efficiency (“miles per gallon”), fuel cost in dollars, or tons of greenhouse gases emitted. Each expression, or “translation,” highlights a different aspect of the same attribute. We describe a new mechanism whereby translated attributes can serve as decision “signposts” because they (1) activate otherwise dormant objectives, such as proenvironmental values and goals, and (2) direct the person toward the option that best achieves the activated objective. Across three experiments, we provide evidence for the occurrence of such signpost effects as well as the underlying psychological mechanism. We demonstrate that expressing an attribute such as fuel economy in terms of multiple translations can increase preference for the option that is better aligned with objectives congruent with this attribute (e.g., the more fuel-efficient car for those with proenvironmental attitudes), even when the new informatio...

Developing a scale for the perceived social benefits of sharing

Purpose The purpose of this research was to create a brief scale to measure perceived social benefit that would be appropriate for use in future research aiming to explore the role of this variable in determining word-of-mouth (WOM) behaviour. There is evidence that perceived social risk negatively impacts the willingness to share, but the role of perceived social benefit has not yet been explored. Understanding how perceived social risk and benefit interact to determine WOM will inform social marketing campaign design. Design/methodology/approach This paper outlines two studies: Study 1 was concerned with the development of the perceived social benefit of sharing scale (PSBSS), including the construction of preliminary items and the reliability and discriminant validity of the final scale. Study 2 involved an investigation of the concurrent validity of the PSBSS in relation to the likelihood to share. Findings Study 1 demonstrated that the perceived social benefit associated with WOM was related to social approval, impression management and social bonding. The results of Study 2 established that scores on the PSBSS predicted self-reported likelihood to engage in both face-to-face WOM and electronic WOM. Originality/value The PSBSS can be used to examine the role of perceived social benefit, including how the interaction between perceived social risk and benefit determines where, when and with whom people will share WOM.