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Prospect theory’s value function is depicted in Figure
2. Objective measures such as number of lives or amount of
money are located on the x-axis. A psychological factor—value—is
located on the y-axis. The value function simply depicts the
relationship between objective gains/losses and one’s psychological
reaction to them.
There
are two important points to note. First, both gains and losses
obey the law of diminishing returns. As gains increase, each
additional increment of gain becomes less valuable. As losses
increase, each additional increment of loss becomes less painful.
Second, the curve is steeper for losses than for gains. This
is the basis for loss
aversion; losses have a greater psychological impact than
do equivalent gains.
Rothman
and Salovey (1997) have demonstrated how this analysis can
explain several aspects of patient decision making. Many detection
procedures, such as breast self-examination, are perceived to
involve risk. A patient might detect a lump, which would be a
frightening experience. To get patients to perform breast self-examination,
the physician might try entreaties framed in terms of either gains
or losses. A gain-framed message might highlight the reassurance
of finding out that one’s breasts are healthy. A loss-framed
message might emphasize the dangers of not performing the breast
self-examination. To the extent that performing detection behaviors
is perceived as involving the risk of a loss, a loss-framed message
would be more effective than a gain-framed one. In the lower-left
quadrant of Figure 2 (the region of losses),
people are likely to adopt risky behavior, such as examining one’s
breasts for a lump.
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