Number Size Preference Reversal and its Applications in Personnel and Consumer Contexts

Professor Kin Fai Ellick WONG
Ph.D., The Chinese University of Hong Kong
Department of Management of Organizations,
Hong Kong University of Science & Technology

Abstract

Previous research has found that changes in information, evaluation scales, or evaluation modes lead to preference reversals. Drawing upon prospect theory, I introduce a number size preference reversal, which occurs under two conditions sharing identical information, evaluation mode, and evaluation scales. That is, for multiple options that have tradeoffs between attributes, an option is favored more when its superior attribute is presented with small numbers than when it is presented with large numbers. This new type of preference reversal is found in a wide variety of settings, remains stable when different evaluation scales are used, and is not contingent upon positive-negative framing. In this seminar, I will particularly focus on the practical implications of this preference reversal in personnel and consumer contexts.