@article{ref1,
title="The Role of Aspiration Level in Risky Choice: A Comparison of Cumulative Prospect Theory and SP/A Theory",
journal="Journal of mathematical psychology",
year="1999",
author="Lopes, Lola L. and Oden, Gregg C.",
volume="43",
number="2",
pages="286-313",
abstract="In recent years, descriptive models of risky choice have incorporated features that reflect the importance of particular outcome values in choice. Cumulative prospect theory (CPT) does this by inserting a reference point in the utility function. SP/A (security-potential/aspiration) theory uses aspiration level as a second criterion in the choice process. Experiment 1 compares the ability of the CPT and SP/A models to account for the same within-subjects data set and finds in favor of SP/A. Experiment 2 replicates the main finding of Experiment 1 in a between-subjects design. The final discussion brackets the SP/A result by showing the impact on fit of both decreasing and increasing the number of free parameters. We also suggest how the SP/A approach might be useful in modeling investment decision making in a descriptively more valid way and conclude with comments on the relation between descriptive and normative theories of risky choice. Copyright 1999 Academic Press.<p /><p>Language: en</p>",
language="en",
issn="0022-2496",
doi="10.1006/jmps.1999.1259",
url="http://dx.doi.org/10.1006/jmps.1999.1259"
}