The Ending Effect in Investment Decisions: The Motivational Need for an Emotionally Rewarding Ending

The Ending Effect in the Domain of Gambling: The Effect of Gain-Loss Status on Economic Decision-Making

Previous studies have shown that people prefer risk-taking at the end of gambles, a phenomenon called the ending effect. By using the Guess Gambling Game, we investigated the impact of gain-loss status on the ending effect (Experiment 1) and whether and how this effect may be affected by time reference (Experiment 2) and gender (Experiment 1&2). In Experiment 1, we observed the ending effect only in the gain group. Furthermore, gender differences exist in the loss group behavior, females were more risk-averse than males, and males tend to investment more initially and then reduce their investment in a U-shaped pattern (Experiment 1&2). Next, in Experiment 2, the findings indicated that participants in the gain group made riskier decisions and were willing to allocate more money for additional decision opportunities, irrespective of the time conditions. Additionally, under time-limited condition, participants tended to make more decisions in the final round, aiming to maximize their choices times within the limited time. These results contribute to a better understanding of the boundary conditions surrounding the ending effect in risky decision-making and may offer a scientific basis for mitigating and intervening in irrational decision-making.

The Bounded Ending Effect in the Domain of Football Gambling: High Risks Are Not Always Preferred at the End

Previous research has demonstrated that individuals present increased risk taking at the end of a series of gambles, a phenomenon called the ending effect. By using a large online football gambling data, we attempted to replicate the ending effect and tested the existence of a different pattern of increased risk taking at the ending. The results showed that at the end of a series of football gambles, bettors would take more risks, and options with lower risk would be preferred. In games without the interference of local bettors, the ending effect was found to be stronger than that of games with local bettors. Overall, the results provide evidence for the bounded ending effect. Possible underlying mechanisms of the bounded ending effect are explored.

Longshot or Favorite: The Ending Effect in Investment Decisions

The ending effect describes the phenomenon that at the end of a series of repeated risky decision-making tasks, participants become more likely to engage in risk-taking behavior. Past research has suggested that the ending effect might be caused by a motivational shift induced by changes in time perception. Previous studies mainly tested this phenomenon in a binary decision-making setting (e.g., a decision-making task usually includes two alternatives). However, none of these prior studies included safe options and risky options that differed in risk levels. To address this knowledge gap, the present study replicated the ending effect in a repeated decision-making task that included both a safe option and risky options that differed in risk levels (N = 104). We found that at the end of the decision-making task, participants became more likely to engage in risk-taking and to favor the option with the highest risk. Further, we found that the investment likelihood and investment amount of high-risk options both increased significantly at the ending. In addition, a shift in favoring the safe option emerged in the noninformed condition at the end. We also found that the emotional motivation in the last round could predict the increased preference for high-risk at the ending. This study extended previous findings on the ending effect by adopting a more complex decision-making scenario and, more broadly, helped further our understanding of the psychological consequences of perceived endings.

Motivated to Gain: Awareness of an Impending Ending and the Ending Effect

The ending effect describes the phenomenon that individuals are more risk-taking during the final round of a series of risky decision tasks. Previous research suggests that the ending effect might be caused by a motivational shift induced by changes in time perception. However, none of the existing research directly tested the motivational state immediately before the last round of a series of risky decision tasks. To fill in this gap of knowledge, the present study tested whether this motivational shift indeed occurs immediately before the last round. All participants worked on 11 rounds of risky decision tasks, half of them knew that the decision tasks included 11 rounds, whereas the other half did not know. Before the last round of the risky decision tasks, all participants completed a visual reaction time task. It was found that, compared with participants who were not aware of the impending ending, those who knew they were approaching the last round responded to peripherally located character strings appearing immediately after gain-related words slower than those appearing after loss-related words, suggesting that perceived endings lead participants to be more motivated toward gaining rewards. This work provides critical evidence which supports the motivational account of the ending effect proposed in previous research. Such a finding would represent a next step in unpacking the psychological consequences of perceived endings in everyday life.