Reduced Risk-Taking After Prior Losses in Pathological Gamblers Under Treatment and Healthy Control Group but not in Problem Gamblers

A group of pathological gamblers and a group of problem gamblers (i.e., gamblers at risk of becoming pathological) were compared to healthy controls on their risk-taking propensity after prior losses. Each participant played both the Balloon Analogue Risk Taking task (BART) and a modified version of the same task, where individuals face five repeated predetermined early losses at the onset of the game. No significant difference in risk-taking was found between groups on the standard BART task, while significant differences emerged when comparing behaviors in the two tasks: both pathological gamblers and controls reduced their risk-taking tendency after prior losses in the modified BART compared to the standard BART, whereas problem gamblers showed no reduction in risk-taking after prior losses. We interpret these results as a sign of a reduced sensitivity to negative feedback in problem gamblers which might contribute to explain their loss-chasing tendency.     

Perceptions and expectations of price changes and inflation: A review and conceptual framework

Drawing on relevant literature from a diverse range of academic disciplines we present a conceptual framework intended to further our understanding of perceptions and expectations of price changes and inflation. Based on this framework, we provide a detailed review of the literature and an analysis of open issues in current research. The review is primarily concerned with individuals’ perceptions and expectations of price changes and inflation, which can influence individuals’ economic behaviour (e.g. spending and saving decisions). The main insight from the review is that while consumers may have a limited ability to store and recall specific prices, and even succumb to a number of biases in the way in which they form perceptions and expectations of global price changes, they do seem to have some feel for, and ability to judge and forecast, inflation. How they achieve this, however, is still an open question, although plausible explanations have been proposed. While much important research has been undertaken and significant progress made in our understanding of the psychology of inflation, there remain many unanswered questions and interesting avenues for future research, which are discussed in the final part of the paper.     

The Relation Between Probability and Evidence Judgment: An Extension of Support Theory

We propose a theory that relates perceived evidence to numerical probability judgment. The most successful prior account of this relation is Support Theory, advanced in Tversky and Koehler (1994). Support Theory, however, implies additive probability estimates for binary partitions. In contrast, superadditivity has been documented in Macchi, Osherson, and Krantz (1999), and both sub- and superadditivity appear in the experiments reported here. Nonadditivity suggests asymmetry in the processing of focal and nonfocal hypotheses, even within binary partitions. We extend Support Theory by revising its basic equation to allow such asymmetry, and compare the two equations' ability to predict numerical assessments of probability from scaled estimates of evidence for and against a given proposition. Both between- and within-subject experimental designs are employed for this purpose. We find that the revised equation is more accurate than the original Support Theory equation. The implications of asymmetric processing on qualitative assessments of chance are also briefly discussed.