CONFIGURAL WEIGHTING IN JUDGMENTS OF 2-OUTCOME AND 4-OUTCOME GAMBLES

This study tested branch independence, a key property distinguishing n onconfigural from configural theories of decision making, Sixty underg raduates judged buying and selling prices of 168 lotteries composed of 2 or 4 equally likely outcomes, (x, y, z, v). Branch independence req uires that (x, y, z, v) is judged higher than (x', y', z, v) whenever (x, y, z', v') is judged higher than (x', y', z', v'). Different viola tions observed in different viewpoints are consistent with the theory that the utility function is independent of viewpoint and that only co nfigural weights differ between viewpoints. Lower ranked outcomes have greater weights in the bu;ver's than in the sellers viewpoint. Seller s place more weight than buyers on higher ranked outcomes. In both vie wpoints, violations of branch independence are contrary to the inverse -S weighting function of cumulative prospect theory: Moderate outcomes receive more weight than adjacent extreme outcomes.