| Publications [#274152] of Richard P. Larrick
search sites.duke.edu.Papers Published
- Larrick, RP; Heath, C; Wu, G (2009). Goal-induced risktaking in negotiation and decision making. Social Cognition, 27(3), 342-364. [doi]
(last updated on 2024/03/28)
Abstract: Three experiments test whether specific, challenging goals increase risk taking. We propose that goals serve as reference points, creating a region of perceived losses for outcomes below a goal (Kahneman & Tversky, 1979; Tversky & Kahneman, 1992). According to the Prospect Theory value function, decision makers become more risk seeking in the domain of losses. In all three experiments we compared a "do your best" condition with a "specific, challenging goal" condition. The goal condition consistently increased risky behavior in both negotiation and decision making tasks. The discussion considers how goals influence expectations, strategy choice, and unethical behavior.
|