From group diffusion to ratio bias: Effects of denominator and numerator salience on intuitive risk and likelihood judgments

Paul C. Price and Teri V. Matthews

Judgment and Decision Making, 2009, vol. 4, issue 6, pages 436-446

Abstract: The group-diffusion effect is the tendency for people to judge themselves to be less likely to experience a negative outcome as the total number of people exposed to the threat increases --- even when the probability of the outcome is explicitly presented (Yamaguchi, 1998). In Experiment 1 we replicated this effect for two health threat scenarios using a variant of Yamaguchi's original experimental paradigm. In Experiment 2, we showed that people also judge themselves to be less likely to be selected in a lottery as the number of people playing the lottery increases. In Experiment 3, we showed that explicitly presenting the number of people expected to be selected eliminates the group-diffusion effect, and in Experiment 4 we showed that presenting the number expected to be affected by a health threat without presenting the total number exposed to the threat produces a reverse effect. We propose, therefore, that the group-diffusion effect is related to the ratio bias. Both effects occur when people make risk or likelihood judgments based on information presented as a ratio. The difference is that the group-diffusion effect occurs when the denominator of the relevant ratio is more salient than the numerator, while the ratio bias occurs when the numerator is more salient than the denominator.

Keywords: risk judgment; probability judgment; group-diffusion effect; ratio bias. (search for similar items in EconPapers)
Date: 2009

Downloads: (external link)
http://journal.sjdm.org/9430/jdm9430.pdf (application/pdf)
http://journal.sjdm.org/9430/jdm9430.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jdm:journl:v:4:y:2009:i:6:p:436-446

Access Statistics for this article

Judgment and Decision Making is edited by Jonathan Baron

More articles in Judgment and Decision Making from Society for Judgment and Decision Making
Series data maintained by Jonathan Baron ().