Magnitude and incentives: Revisiting the overweighting of extreme events in risky decisions from experience

Article English OPEN
Konstantinidis, E; Taylor, RT; Newell, BR;
  • Publisher: Springer Verlag

Recent experimental evidence in experience-based decision-making suggests that people are more risk seeking in the gains domain relative to the losses domain. This critical result is at odds with the standard reflection effect observed in description-based choice and ex... View more
  • References (34)
    34 references, page 1 of 4

    Abdellaoui, M., Bleichrodt, H., & L'Haridon, O. (2008). A tractable method to measure utility and loss aversion under prospect theory. Journal of Risk and Uncertainty, 36, 245-266.

    Ahn, W.-Y., Busemeyer, J. R., Wagenmakers, E. - J.., & Stout, J. C. (2008). Comparison of decision learning models using the generalization criterion method. Cognitive Science, 32, 1376-1402.

    Ashby, N. J S., Konstantinidis, E., & Yechiam, E. (2017). Choice in experiential learning: True preferences or experimental artifacts? Acta Psychologica, 174, 59-67. 2017.01.010

    Barron, G., & Erev, I. (2003). Small feedback-based decisions and their limited correspondence to description-based decisions. Journal of Behavioral Decision Making, 16, 215-233. https://doi. org/10.1002/bdm.443

    Bates, D., Ma¨chler, M., Bolker, B., & Walker, S. (2015). Fitting linear mixed-effects models using lme4. Journal of Statistical Software, 67, 1-48.

    Camilleri, A. R., & Newell, B. R. (2011). When and why rare events are underweighted: A direct comparison of the sampling, partial feedback, full feedback and description choice paradigms. Psychonomic Bulletin & Review, 18, 377-384. 3423-010-0040-2.

    Erev, I., Ert, E., Plonsky, O., Cohen, D., & Cohen, O. (2017). From anomalies to forecasts: Toward a descriptive model of decisions under risk, under ambiguity, and from experience. Psychological Review, 124, 369-409.

    Erev, I., Ert, E., & Yechiam, E. (2008). Loss aversion, diminishing sensitivity, and the effect of experience on repeated decisions. Journal of Behavioral Decision Making, 21, 575-597.

    Ert, E., & Yechiam, E. (2010). Consistent constructs in individuals? risk taking in decisions from experience. Acta Psychologica, 134, 225-232.

    Gonzalez, C., & Dutt, V. (2011). Instance-based learning: Integrating sampling and repeated decisions from experience. Psychological Review, 118, 523-551.

  • Related Organizations (9)
  • Metrics
Share - Bookmark