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Consider the situation depicted in Figure 3.
Here is a case in which a potential gain is being considered.
The future benefit lies to the “gain” side of the present status,
indicating that an improvement is being contemplated. The impact
of that improvement can be measured along the y-axis.
Figure
4
represents a different situation. Now the status quo is a deficient
state. The improvement under consideration is a return to a better
previous condition.
Note
that the magnitude of the improvement is greater when one returns
to a prior better situation than when one tries to convert a current
situation to a better future (Gregory,
Lichtenstein, and MacGregor, 1993).
Gregory et al. showed that persons were more willing to pay for
public health programs which returned the community to a safe
prior state than they were to pay for improvements in public health.
People
react strongly if they perceive their current state as deficient.
An improvement will move one up the steep portion of the value
function located in the loss domain (“If only we could return
to the good old days”). On the other hand, the gain to be derived
from improvements to the status quo climb the relatively shallow
right side of the value function. People do not find such gains
very compelling. Patients who perceive that they have suffered
a loss are more motivated than persons who perceive no loss but
who contemplate an equal-sized gain.
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