Risky weighting in discrete choice
نویسندگان
چکیده
منابع مشابه
Risky Weighting in Discrete Choice
This paper presents a new approach to discrete choice analysis for risky prospects. Conventional discrete choice analysis focuses on riskless prospects and does not deal with the scenario where the alternatives that the decision-makers choose from are associated with risk. In this paper, we investigate decisionmakers’ risk perception and choice behaviour in choice experiments when they are faci...
متن کاملDopamine D₁ receptors and nonlinear probability weighting in risky choice.
Misestimating risk could lead to disadvantaged choices such as initiation of drug use (or gambling) and transition to regular drug use (or gambling). Although the normative theory in decision-making under risks assumes that people typically take the probability-weighted expectation over possible utilities, experimental studies of choices among risks suggest that outcome probabilities are transf...
متن کاملExaggerated 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 کاملDissecting the risky-choice framing effect: Numeracy as an individual-difference factor in weighting risky and riskless options
Using five variants of the Asian Disease Problem, we dissected the risky-choice framing effect by requiring each participant to provide preference ratings for the full decision problem and also to provide attractiveness ratings for each of the component parts, i.e., the sure-thing option and the risky option. Consistent with previous research, more risky choices were made by respondents receivi...
متن کاملModeling Gain-Loss Asymmetries in Risky Choice: The Critical Role of Probability Weighting
A robust empirical regularity in decision making is that the negative consequences of an option (i.e., losses) often have a stronger impact on people’s behavior than the positive consequences (i.e., gains). One common explanation for such a gain-loss asymmetry is loss aversion. To model loss aversion in risky decisions, prospect theory (Kahneman & Tversky, 1979) assumes a kinked value function ...
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: Transportation Research Part B: Methodological
سال: 2017
ISSN: 0191-2615
DOI: 10.1016/j.trb.2017.04.014