TY  - JOUR
PY  - 1999//
TI  - The Role of Aspiration Level in Risky Choice: A Comparison of Cumulative Prospect Theory and SP/A Theory
JO  - Journal of mathematical psychology
A1  - Lopes, Lola L.
A1  - Oden, Gregg C.
SP  - 286
EP  - 313
VL  - 43
IS  - 2
N2  - 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>
LA  - en
SN  - 0022-2496
UR  - http://dx.doi.org/10.1006/jmps.1999.1259
ID  - ref1
ER  -