Related Experiment Video
Updated: Aug 6, 2026
13:04
Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
Risk matters less when options are apples-to-oranges: The translate-and-accommodate model
Evan Weingarten1, Yuval Rottenstreich2, George Wu3
1Marshall School of Business, University of Southern California.
Psychological Review
|July 23, 2026
Summary
Decision-making research shows people are less risk-averse when comparing different types of outcomes (crossmodal choices). This challenges the assumption that risk aversion applies universally across all decision domains.
Area of Science:
- Behavioral Economics
- Decision Science
- Cognitive Psychology
Background:
- Risk aversion for moderate-likelihood gains is a well-established finding in decision research.
- Existing studies primarily focus on monetary decisions, assuming this behavior generalizes across domains.
- The generalization of risk aversion to diverse choice scenarios requires empirical validation.
Purpose of the Study:
- To investigate whether risk aversion generalizes across different types of decision-making contexts.
- To contrast risk preferences in unimodal (same-domain) versus crossmodal (different-domain) choices.
- To propose a model explaining observed differences in risk-taking behavior.
Main Methods:
- Comparison of participant choices between sure outcomes and risky options within the same domain (unimodal).
- Comparison of participant choices between sure outcomes and risky options across different domains (crossmodal).
- Analysis of risk aversion levels and their sensitivity to changes in outcome likelihood and value.
Main Results:
- Crossmodal choices exhibit significantly less risk aversion compared to unimodal choices, particularly for fair and unfavorable risks.
- Risk preferences in crossmodal settings show less variation across different risk levels (likelihood and value).
- An interaction effect was observed: crossmodal settings lead to less aversion to unfavorable/fair risk but more aversion to favorable risk compared to unimodal settings.
Conclusions:
- The assumption of universal risk aversion across all decision domains is not supported.
- The 'translate-and-accommodate' model explains crossmodal decision-making through deterministic translation and risk accommodation processes.
- This model accounts for the uncertainty effect and seemingly irrational choices in crossmodal contexts.
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