Single-limit interval estimates as reference points

Abstract

People often describe uncertain quantities by suggesting a lower or upper limit of an uncertainty interval, rather than the complete range. Five studies are reported, which demonstrate how interval limits function as provisional reference points (PRP), conferring evaluative meanings to the target objects, by suggesting downward or upward comparisons. Thus, a price above X appears expensive, whereas a price below Y appears cheap, even when Y > X. This can give rise to framing effects: a purchase can appear to be recommended or advised against, and a seller can appear as optimistic or pessimistic, and, more generally, an estimate can indicate abundance or scarcity, depending upon which boundary (upper or lower) that is selected. Furthermore, inclusive lower bounds (minimum, at least) and upper bounds (maximum, at most) differ from exclusive lower (more than, above) and upper bounds (less than, below), by suggesting possible (likely) rather than implausible (unlikely) values. Copyright © 2006 John Wiley & Sons, Ltd.