Double Reference Points: the Effects of Social and Financial Reference Points on Decisions Under Risk

Lu, Jingyi; Xie, Xiaofei; Wang, Mei; Tang, Xin

doi:10.1002/bdm.1862

Cited by 16 publications

(13 citation statements)

References 45 publications

(54 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In addition, we observed that the impact of SRPs on risk-seeking behavior can be significantly manipulated by the size of the comparison group. In the case of single other and class comparisons, participants generally tended to be risk-seeking under L-SRP, in line with the findings of Lu et al (2015) . However, this risk-seeking inclination dropped dramatically in the case of school comparisons, with risky behavior reversed under L-SRP.…”

Section: Discussionsupporting

confidence: 78%

“…Previous studies examining the influence of SRPs on risky decision making have tended to focus on the realm of monetary decision making (stock investment, lottery, salary etc. ; e.g., Fox and Dayan, 2004 ; Linde and Sonnemans, 2012 ; Lu et al, 2015 ). According to Xie and Lu (2014) , these SRPs can be divided into three types: social gain, social loss, and social neutral.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Influence of Social Comparison and Peer Group Size on Risky Decision-Making

et al. 2016

View full text Add to dashboard Cite

This study explores the influence of different social reference points and different comparison group sizes on risky decision-making. Participants were presented with a scenario describing an exam, and presented with the opportunity of making a risky decision in the context of different information provided about the performance of their peers. We found that behavior was influenced, not only by comparison with peers, but also by the size of the comparison group. Specifically, the larger the reference group, the more polarized the behavior it prompted. In situations describing social loss, participants were led to make riskier decisions after comparing themselves against larger groups, while in situations describing social gain, they become more risk averse. These results indicate that decision making is influenced both by social comparison and the number of people making up the social reference group.

show abstract

Section: Discussionsupporting

confidence: 78%

Section: Introductionmentioning

confidence: 99%

The Influence of Social Comparison and Peer Group Size on Risky Decision-Making

et al. 2016

View full text Add to dashboard Cite

show abstract

“…To date, many studies have begun to emphasize the role of social comparison. For instance, Lu et al [ 47 ] demonstrated that insecurity occurs when individuals are faced with adverse social comparison results, while Cotier and Toulopoulou [ 15 ] further emphasized that negative social comparison appears to be a potential sign of depression. Thus, helping adolescents acquire appropriate social comparison methods could not only be conducive to their social decision-making, but also benefit their physical and mental health.…”

Section: Discussionmentioning

confidence: 99%

The effects of social comparison and depressive mood on adolescent social decision-making

Zhou

Shao

et al. 2021

BMC Psychiatry

View full text Add to dashboard Cite

Background Based on social comparison theory, two experiments were conducted to explore the effects of depression and social comparison on adolescents, using the ultimatum game (UG). Methods Before the formal experiment began, a preliminary experiment tested the effectiveness of social comparison settings. This study used the UG paradigm to explore adolescents’ social decision-making in the context of gain and loss through two experiments. These experiments were designed as a 2 (group: depressive mood group, normal mood group) × 2 (social comparison: upward, downward) × 3 (fairness level: fair 5:5, unfair 3:7, extremely unfair 1:9) three-factor hybrid study. Results (1) The fairer the proposal was, the higher the sense of fairness participants felt, and the higher their acceptance rate. (2) The acceptance rate of the participants for downward social comparison was significantly higher than that for upward social comparison, but there was no difference in fairness perception between the two social comparisons. (3) Under the context of gain, the acceptance rate of the depressive mood group was higher than that of the normal mood group, but there was no difference in the acceptance rate between the depressive mood group and the normal mood group under the loss context. Depressive mood participants had more feelings of unfairness in the contexts of both gain and loss. (4) The effects of depressive mood, social comparison and the fairness level of distribution on social decision-making interact. Conclusions The interaction of social comparison, depressive mood and proposal type demonstrates that besides one’s emotion, cognitive biases and social factors can also have an effect on social decision-making. These findings indicate that behavioral decision boosting may provide an avenue for appropriate interventions in helping to guide adolescents to make social decisions.

show abstract

“…Beside social reference points, they consider an individual's present financial position as a financial reference point. Lu et al (2015) state that individuals think about the financial reference point(s) firstly, and then social reference points are considered. Thus, based on an evolutionary perspective, the safety-first principle is valid (Wang & Johnson, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Relative consumption with multiple reference points under uncertainty

Kovács¹

2020

Economics &Amp; Sociology

View full text Add to dashboard Cite

According to the behavioural economic perspective, an individual's consumer utility derives not only from their absolute consumption but also how much they consume relative to others, that is, relative consumption matters. The purpose of this paper is to study relative consumption by focusing on social comparison, multiple reference points, and uncertainty related to the expectations about others' future consumption. The model presented reflects the dynamics and intertemporal effects of relative consumption concerning consumer utility. The purpose of the model is to describe, by applying theoretical comparative analysis, how an individual's consumer utility derived from relative consumption can change when their social reference points' future absolute consumption level is uncertain. When an individual wants to improve or at least sustain their relative consumption in the future, they have to take into account and estimate the future absolute consumption levels of the persons belonging to their reference group. However, neighbours' future consumption is usually uncertain, thus, the likely outcomes are illustrated with various cases. The study concludes that higher absolute consumption level not necessarily provides higher consumer utility when positional concerns matter. Further, despite investments in positional goods, the misprediction of others' future absolute consumption level can result in lower social standing.

show abstract

Double Reference Points: the Effects of Social and Financial Reference Points on Decisions Under Risk

Cited by 16 publications

References 45 publications

The Influence of Social Comparison and Peer Group Size on Risky Decision-Making

The Influence of Social Comparison and Peer Group Size on Risky Decision-Making

The effects of social comparison and depressive mood on adolescent social decision-making

Relative consumption with multiple reference points under uncertainty

Contact Info

Product

Resources

About