The sign effect, systematic devaluations and zero discounting

Elise Frølich Furrebøe

doi:10.1002/jeab.598

journal article Open Access Apr 12, 2020

The sign effect, systematic devaluations and zero discounting

Elise Frølich Furrebøe

Journal of the Experimental Analysis of Behavior Vol. 113 No. 3 pp. 626-643 · Wiley

View at Publisher Save 10.1002/jeab.598

Abstract

The sign effect is the steeper discounting of gains compared to losses. However, we see a greater sign effect on an individual level compared to an aggregate level. In this experiment, we compare discounting of gains and losses on an individual and aggregate level, to explore further details about when and to what extent human adults discount. Thirty‐one participants went through a computer‐based choice‐task procedure of hypothetical monetary gains and losses. The results show clear qualitative differences between discounting of gains and losses, adding empirical data to support the sign effect. The results also support previous findings that show that aggregate and individual results do not always correspond. Further, the within‐subject details showing zero discounting or nonsystematic changes concerning losses, replicate earlier studies suggesting that discounting of gains and losses involve different reinforcing contingencies. The present study expands on this research area by including verbal reports, supplementing details about the unobserved reinforcing contingencies. Implications of research on discounting may indicate how to deal with decision‐making challenges and might shed light on why predictions about complex decision making sometimes fail.

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Metrics

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Citations

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References

Details

Published: Apr 12, 2020
Vol/Issue: 113(3)
Pages: 626-643
License: View

Authors

E

Elise Frølich Furrebøe

Oslo Metropolitan University Norway

Cite This Article

Elise Frølich Furrebøe (2020). The sign effect, systematic devaluations and zero discounting. Journal of the Experimental Analysis of Behavior, 113(3), 626-643. https://doi.org/10.1002/jeab.598

The sign effect, systematic devaluations and zero discounting

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