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ERIC Number: EJ884776
Record Type: Journal
Publication Date: 2010-Jul
Pages: 13
Abstractor: As Provided
Reference Count: N/A
ISBN: N/A
ISSN: ISSN-0749-5978
A Cross-Cultural Study of Reference Point Adaptation: Evidence from China, Korea, and the US
Arkes, Hal R.; Hirshleifer, David; Jiang, Danling; Lim, Sonya S.
Organizational Behavior and Human Decision Processes, v112 n2 p99-111 Jul 2010
We examined reference point adaptation following gains or losses in security trading using participants from China, Korea, and the US. In both questionnaire studies and trading experiments with real money incentives, reference point adaptation was larger for Asians than for Americans. Subjects in all countries adapted their reference points more after a gain than after an equal-sized loss. When we introduced a forced sale intervention that is designed to close the mental account for a prior outcome, Americans showed "greater" adaptation toward the new price than their Asian counterparts. We offer possible explanations both for the cross-cultural similarities and the cross-cultural differences. (Contains 5 figures and 7 tables.)
Elsevier. 6277 Sea Harbor Drive, Orlando, FL 32887-4800. Tel: 877-839-7126; Tel: 407-345-4020; Fax: 407-363-1354; e-mail: usjcs@elsevier.com; Web site: http://www.elsevier.com
Publication Type: Journal Articles; Reports - Evaluative
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: China; South Korea; United States