Tendency for people to make decisions dependent on the prior gain or loss; includes greater tendency to gamble with recently won money.
In a first phase, participants perform a task in which they are asked to find the exception in a set of five words and then indicate the confidence in their response using a 5-point scale. Later in the test, participants receive feedback on the accuracy of each response and are asked to recall their initial confidence judgment.
The following item is used:
1. You have just received an unexpected 3,000 kn. Choose one of the two options offered:
(a) 50% chance to earn 900 kn and a 50% chance to lose 900 kn
(b) I do not want further gains or losses
2. You've just lost 3,000 kn. Choose one of the two options offered:
(a) 50% chance to earn 900 kn and a 50% chance to lose 900 kn
(b) I do not want further gains or losses
Participants who gave response "a" to question 1 and response "b" to question 2 are coded as biased.
Mušura Gabor, A. & Gamulin, L. (2016). Breaking the myth about rational investor: Investors' susceptibility to heuristical and biased reasoning. Review of psychology, 23(1-2), 15-25.