Tyler Moore, Brigham Young University
Social and Behavioral Sciences
A fundamental concept in behavioral economics is that of loss-aversion, that is, the differentially greater effect of loss when compared to gain. The law of relative effect (also known as the matching law) provides the framework for precise behavioral measurement of that differential in a hedonic scale. We recently developed a video game by which to achieve that measurement. Participants will be invited to play the game during a series of sessions in which gain and loss contingencies are varied–sometimes the participant will gain points and sometimes lose them. In addition to varying the relative frequencies of gains and losses in order to measure their relative effects on behavioral choice, we will measure the effects of an additional variable by means of a different group of participants. This second group will win or lose points in one condition of the experiment and, in the other condition, win or lose actual money. It is our prediction that the group experiencing the loss of money rather than points will demonstrate behaviors indicative of a greater aversion to loss than their counterparts, who will merely lose points.