Please wait a minute...
Advances in Psychological Science    2014, Vol. 22 Issue (4) : 571-579     DOI: 10.3724/SP.J.1042.2014.00571
Special Column for Decision-making Psychology |
Double Reference Points in Risky Decision Making
XIE Xiaofei;LU Jingyi
Department of Psychology, Peking University, Beijing 100871, China
Download: PDF(268 KB)  
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks    

According to prospect theory, decision makers’ gain or loss determined by their current states has a profound effect on decisions under risk. In the current paper, the status quo of decision makers is defined as individual reference point, which determines the context as individual gain or loss. Individual reference point is direct, actual, and absolute given that it affects the actual payoffs of decision makers. However, as social comparison theory goes, decision making is also a matter of social comparison. Thus, the status of others is defined as social reference point, which determines social gain or loss. Social reference point is indirect, hypothetical, and relative because it does not influence the actual payoffs of decision makers directly. Risky decision making is affected by social reference point through self-concept, emotion, and cognition. More importantly, both individual and social reference points exist in risky decision making. They have similar impacts on decision makers, both psychologically and behaviorally, thus affecting risky choice jointly. Therefore, the paper proposes the effects of double reference points on risky decision making. However, further research is needed on the mechanisms of double reference points.

Keywords risky decision making      social reference point      individual reference point      social comparison theory      prospect theory     
Corresponding Authors: XIE Xiaofei   
Issue Date: 15 April 2014
E-mail this article
E-mail Alert
Articles by authors
XIE Xiaofei
LU Jingyi
Cite this article:   
XIE Xiaofei,LU Jingyi. Double Reference Points in Risky Decision Making[J]. Advances in Psychological Science, 2014, 22(4): 571-579.
URL:     OR
[1] YANG Qun; LI Yu; SUN Delin; LEE Tatia M. C.. The effects of stress on risky and social decision making[J]. Advances in Psychological Science, 2016, 24(6): 974-984.
[2] XU Fuming; SHI Yanwei; LI Ou; ZHANG Hui; LI Yan. Mechanisms and measures of the public’ sense of income unfairness: Dual viewpoint of reference dependence and loss aversion[J]. Advances in Psychological Science, 2016, 24(5): 665-675.
[3] DENG Ying; XU Fu-Ming; LI Ou; SHI Yan-Wei; LIU Cheng-Hao. The framing effect on social preferences[J]. Advances in Psychological Science, 2016, 24(4): 622-632.
[4] LIU Yang;SUN Yan. New Avenues for Framing Effect Research in Decision-making: From Risky to Intertemporal and from Verbal to Graph Framing[J]. Advances in Psychological Science, 2014, 22(8): 1205-1217.
[5] SHI Yanwei;XU Fuming;LI Yan;LIU Chenghao;LI Bin. The Framing Effect in the Public Decision-making : Theoretical Explanation and Influential Factors[J]. Advances in Psychological Science, 2014, 22(8): 1303-1311.
[6] ZHANG Ying;FENG Tingyong. The Developmental Cognitive Neural Mechanisms of Adolescents’ Risky Decision Making[J]. Advances in Psychological Science, 2014, 22(7): 1139-1148.
[7] HE Qinghua;XUE Gui;CHEN Chunhui;DONG Qi;CHEN Chuansheng. The Role of Genes in Risky Decision Making[J]. Advances in Psychological Science, 2014, 22(2): 191-204.
[8] X. T. WANG;WANG Peng. Tri-Reference Point Theory of Decision Making: From Principles to Applications[J]. Advances in Psychological Science, 2013, 21(8): 1331-1346.
[9] LI Haijun;XU Fuming;XIANG Peng;KONG Shixiao;MENG Zhenzhen. Reference Dependence Based on Prospect Theory[J]. Advances in Psychological Science, 2013, 21(2): 317-325.
[10] HUANG Zhi-Hua;YAN Gong-Gu;WANG Tian-Le. Decisions from Experience: Concept, Researches and Prospect[J]. , 2011, 19(12): 1814-1821.
[11] SUN Hong-Yue;SU Yin;ZHOU Kun;LI Shu. From Multiple-play to Single-play in Risky Decision Making: Quantitative Change or Qualitative Change?[J]. , 2011, 19(10): 1417-1425.
[12] Weng Xuedong. The Progress of Investing Psychology Theories of America[J]. , 2003, 11(03): 262-266.
[13] Chang Xin,Yin HongHai. Daniel Kahneman and Behavioral Economics[J]. , 2003, 11(03): 256-261.
[14] Zhang Ling. How the Psychological Variable Affected the Judgment of Value in Risky Decision-making?——Discussing about Kahneman’s Contributions[J]. , 2003, 11(03): 274-280.
[15] Zhou Guomei,Jing Qicheng. Psychologist Daniel Kahneman Wins 2002 Nobel Prize in Economics[J]. , 2003, 11(01): 1-5.
Full text



Copyright © Advances in Psychological Science
Support by Beijing Magtech