ABSTRACT
Chapter 10 by Gärling, Karlsson, Romanus and Selart presents research in which the past time perspective is highlighted. They summarise research on the impact of information about earlier decisions and their outcomes on subsequent decisions. In their review, the authors cover research including multistage decision making and decisions in a sequence of escalation of a failing course of action (also called entrapment). Effects of prior decisions and outcomes on later decisions include sunk cost effects and the status quo phenomenon. Empirical results, such as the finding that prior outcomes tend to affect evaluations of losses rather than gains in a subsequent decision, known as the loss sensitivity principle, are related to different theoretical explanations in the second part of the chapter.
