Abstract

Fixed differences loom smaller when compared to large differences. We propose a model of relative thinking where a person weighs a given change along a consumption dimension by less when it is compared to bigger changes along that dimension. In deterministic settings, the model predicts context effects such as the attraction effect but predicts meaningful bounds on such effects driven by the intrinsic utility for the choices. In risky environments, a person is less likely to sacrifice utility on one dimension to gain utility on another that is made riskier. For example, a person is less likely to exert effort for a fixed monetary return if there is greater overall income uncertainty. We design and run experiments to test basic model predictions and find support for these predictions.

中文翻译：

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相对思维模型

摘要

与大差异相比，固定差异较小。我们提出了一种相对思维模型，其中一个人在消费维度上的给定变化与在该维度上的较大变化相比，权重要小一些。在确定性设置中，该模型可以预测情境效应（例如吸引效应），但可以预测由内在效用驱动的选择对这些效应的有意义的界限。在有风险的环境中，一个人不太可能在一个维度上牺牲效用，而在另一个风险更高的维度上获得效用。例如，如果总体收入的不确定性更大，那么一个人就不太可能为固定的货币回报而付出努力。我们设计并运行实验以测试基本模型预测，并找到对这些预测的支持。