Princeton University Library Catalog
- Cheong, Jin Hyun [Browse]
- Senior thesis
- Osherson, Daniel [Browse]
- Coman, Alin [Browse]
- Princeton University. Department of Psychology [Browse]
- Class year:
- 61 pages
- Restrictions note:
- Walk-in Access. This thesis can only be viewed on computer terminals at the Mudd Manuscript Library.
- Summary note:
- Active involvement and prediction of outcomes have been found in previous studies to
generate an illusion of control that engenders overconfidence of success and increased risktaking
behavior. This study investigates the relationship between levels of involvement and
temporal orientations of judgment as causes for illusory control in addition to testing the
mediating effect of illusory control on loss aversion, which modulates risk-taking behavior.
Participants evaluated acceptability of equiprobable gambles by reporting confidence levels and
minimum gain-to-loss ratios. Results indicated an interdependent crossover interaction in which
active involvement in predicting outcomes increased confidence and decreased loss aversion
while active involvement in postdicting outcomes decreased confidence and increased loss
aversion. In addition, illusion of control did not mediate effects of involvement and timing of
judgment on loss aversion. Avoidance to regret is proposed as an explanation for the crossover
interaction and the relationship between illusory control and loss aversion is discussed.