Multiple Goals as Reference Points: One Failure Makes Everything Else Feel Worse

Evan Weingarten (), Sudeep Bhatia () and Barbara Mellers ()
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Evan Weingarten: University of California San Diego, La Jolla, California 92093
Sudeep Bhatia: University of Pennsylvania, Philadelphia, Pennsylvania 19104
Barbara Mellers: University of Pennsylvania, Philadelphia, Pennsylvania 19104

Management Science, 2019, vol. 65, issue 7, 3337-3352

Abstract: It is well known that goals serve as reference points, and their influence on pleasure can be understood with prospect theory’s value function. We examine how people feel about their progress on two goals (i.e., academics and fitness). What happens when they achieve one goal but fail to reach another? In four studies, we test the assumptions needed to explain hedonic reactions to progress along two goals. Loss aversion and diminishing sensitivity hold on each variable separately. However, we find violations of additivity in the integration of the emotions about outcomes. A success in one goal and a failure in another feel worse than the sum of the pleasure and pain associated with the gain and loss, respectively.

Keywords: goals; reference points; prospect theory; loss aversion; additivity (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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