Loss aversion and inhibition in dynamical models of multialternative choice

Marius Usher*, James L. McClelland

*Corresponding author for this work

Research output: Contribution to journalReview articlepeer-review

Abstract

The roles of loss aversion and inhibition among alternatives are examined in models of the similarity, compromise, and attraction effects that arise in choices among 3 alternatives differing on 2 attributes. R. M. Roe, J. R. Busemeyer, and J. T. Townsend (2001) have proposed a linear model in which effects previously attributed to loss aversion (A. Tversky & D. Kahneman, 1991) arise from attention switching between attributes and similarity-dependent inhibitory interactions among alternatives. However, there are several reasons to maintain loss aversion in a theory of choice. In view of this, an alternative theory is proposed, integrating loss aversion and attention switching into a nonlinear model (M. Usher & J. L. McClelland, 2001) that relies on inhibition independent of similarity among alternatives. The model accounts for the 3 effects and makes testable predictions contrasting with those of the Roe et al. (2001) model.

Original languageEnglish
Pages (from-to)757-769
Number of pages13
JournalPsychological Review
Volume111
Issue number3
DOIs
StatePublished - Jul 2004
Externally publishedYes

Funding

FundersFunder number
National Institute of Mental HealthP50MH064445

    Fingerprint

    Dive into the research topics of 'Loss aversion and inhibition in dynamical models of multialternative choice'. Together they form a unique fingerprint.

    Cite this