Gestalt and dynamic processes in decision making.

People sometimes prefer a sure gain to a risky but possibly larger gain, a tendency known as risk-aversion. On the other hand, they may prefer a possibly larger loss to a smaller sure loss, a tendency known as risk-seeking. Experiment 1 showed that, by repeating the event, these tendencies could be substantially reduced, but not eliminated, when expected value was held constant between the sure alternative and the risky one. Experiment 2 demonstrated that risk-aversion can be reversed to risk-seeking within the gain situation, and vice versa within the loss situation, by changing the probabilities and the payoffs associated with the probabilities. It was suggested that the results of both experiments can be understood by a concept of Gestalt organization and dynamic processes in decision making.