Preferences for Sequences - Testing Loewenstein and Prelec’s Two Findings on Sequence Preferences

This research paper aims to test the robustness of two of Loewenstein and Prelec’s findings from the article “Preferences for Sequences of Outcomes”: The preference of individuals to spread outcomes over time and the preference to have a sequence with improving outcomes. By modifying their initial study, a questionnaire is constructed and through it the preferences for sequences of 120 students is collected. The results provide the basis for testing the applicability of the two theories proposed by Loewenstein and Prelec (1993). Graphical and statistical analysis is used in this paper to derive conclusions.