Risk and rationality: The relative importance of probability weighting and choice set dependence
نویسندگان
چکیده
Abstract The literature suggests that probability weighting and choice set dependence influence risky choices. However, their relative importance remains an open question. We present a joint test uses binary choices between lotteries provoking Common Consequence Ratio Allais Paradoxes manipulates payoff distribution. show non-parametrically both play role at describing aggregate To parsimoniously account for heterogeneity, we also estimate structural model using finite mixture approach. uncovers substantial heterogeneity classifies subjects into three types: 38% Prospect Theory types whose are predominantly driven by weighting, 34% Salience dependence, 28% Expected Utility types. predicts type-specific differences in the frequency of preference reversals out-of-sample, i.e., with different context than ones used estimating model. Moreover, out-of-sample predictions indicate shapes dependence.
منابع مشابه
the study of practical and theoretical foundation of credit risk and its coverage
پس از بررسی هر کدام از فاکتورهای نوع صنعت, نوع ضمانت نامه, نرخ بهره , نرخ تورم, ریسک اعتباری کشورها, کارمزد, ریکاوری, gdp, پوشش و وثیقه بر ریسک اعتباری صندوق ضمانت صادرات ایران مشخص گردید که همه فاکتورها به استثنای ریسک اعتباری کشورها و کارمزد بقیه فاکتورها رابطه معناداری با ریسک اعتباری دارند در ضمن نرخ بهره , نرخ تورم, ریکاوری, و نوع صنعت و ریسک کشورها اثر عکس روی ریسک اعتباری داردو پوشش, وثی...
15 صفحه اولترجمه و نقد کتاب the justification of science and the rationality of religious belife
چکیده ندارد.
15 صفحه اولExaggerated risk: prospect theory and probability weighting in risky choice.
In 5 experiments, we studied precautionary decisions in which participants decided whether or not to buy insurance with specified cost against an undesirable event with specified probability and cost. We compared the risks taken for precautionary decisions with those taken for equivalent monetary gambles. Fitting these data to Tversky and Kahneman's (1992) prospect theory, we found that the wei...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Risk and Uncertainty
سال: 2022
ISSN: ['0895-5646', '1573-0476']
DOI: https://doi.org/10.1007/s11166-022-09392-x