Related Experiment Video
Updated: Jan 15, 2026
13:04
Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
12.4K
Cognitive mechanisms of subjective value in multiattribute pricing
Anderson K Fitch1, Peter D Kvam2
1Department of Psychology, University of Florida.
Psychological Review
|October 9, 2025
Summary
People assign subjective value differently when making choices versus setting prices, even for the same multiattribute options. This study used a neural network model to explore these preference reversals in economic decision-making.
Area of Science:
- Decision Sciences
- Cognitive Neuroscience
- Behavioral Economics
Background:
- Understanding subjective value assignment is key to economic preferences.
- Multiattribute preferences are often studied via binary choices.
- Price-based valuation may differ from choice-based valuation, showing preference reversals.
Purpose of the Study:
- To reconcile diverging measurements of subjective value from choice and price elicitation.
- To investigate how preferences change across choice and price domains.
- To explore the influence of gains/losses, buying/selling frames, and time pressure on value assignment.
Main Methods:
- Developed a two-step, neural network-based modeling approach.
- Employed switchboard model comparison to test cognitive mechanisms.
- Utilized individualized joint models to capture unique participant parameters.
Main Results:
- Delay discounting and risk aversion were common to both choice and price models.
- Anchoring and payoff sensitivity diverged significantly between pricing and choice tasks.
- Extensive differences emerged across elicitation procedures, suggesting value representation is context-dependent.
Conclusions:
- Subjective value representation appears context-dependent, varying between choice and price elicitation.
- A unified representation of value across different methods may be difficult to achieve.
- Future research should consider the distinct mechanisms influencing choice versus price valuation.
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