The effect of reward-rescaling on risk preference

Several findings indicate that value-based decision-making is context-dependent. However, the influence of the value range of preceding choices within a context has not been investigated. We studied this influence on risk preference, using a paradigm where people chose between risky and non-risky options with the same expected value. Crucially, the same choice could be either relatively good or bad, depending on the preceding choices presented in the context. At variance with standard economic models such as expected utility and prospect theory, participants were more risk prone with good choices. Moreover, risk preferences for the same choices in different contexts increased when these choices were relatively good rather than relatively bad. Overall, these results suggest that participants rescaled choice values depending on the value range of the preceding choices within a context. In addition, the rescaling was non-linear, thus leading to modifications in risk preference