Between-Individual Comparisons in Performance Evaluation: A Perspective From Prospect Theory

Abstract

This article examines how between-individual comparisons influence performance evaluations in rating tasks. The authors demonstrated a systematic change in the perceived difference across ratees as a result of changing the way performance information is expressed. Study 1 found that perceived performance difference between 2 individuals was greater when their objective performance levels were presented with small numbers (e.g., absence rates of 2% vs. 5%) than when they were presented with large numbers (e.g., attendance rates of 98% vs. 95%). Extending this finding to situations involving trade-offs between multiple performance attributes across ratees, Study 2 showed that the relative preference for 1 ratee over another actually reversed when the presentation format of the performance information changed. The authors draw upon prospect theory (D. Kahneman & A. Tversky, 1979; A. Tversky & D. Kahneman, 1981) to offer a theoretical framework describing the between-individual comparison aspect of performance evaluation. (PsycInfo Database Record (c) 2025 APA, all rights reserved)