publication . Article . Report . 1982

Multiattribute Risky Choice Behavior: The Editing of Complex Prospects

John W. Payne; Dan J. Laughhunn; Roy L. Crum;
Open Access
  • Published: 01 Feb 1982 Journal: Management Science, volume 30, pages 1,350-1,361 (issn: 0025-1909, eissn: 1526-5501, Copyright policy)
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
This investigation draws upon concepts from prospect theory (Kahneman and Tversky [Kahneman, D., A. Tversky. 1979. Prospect theory: an analysis of decisions under risk. Econometrica 47 263--291.]) and multiattribute utility theory (Keeney and Raiffa [Keeney, R. L., H. Raiffa. 1976. Decisions with Multiple Objectives: Preferences and Value Tradeoffs. Wiley, New York.]) in an examination of the multiattribute risky choice behavior of 128 managers. The questions of how managers edit multiattribute prospects and how editing relates to various independence assumptions were explored. The major result is that managers appear to violate attribute independence in its gen...
free text keywords: Management Science and Operations Research, Strategy and Management, decision making, risk, multiattribute utility theory, Aspiration level, Mathematical economics, Risk-seeking, Prospect theory, Multiplicative function, Decision aids, Management science, Decision theory, Multilinear map, Risk aversion, Economics
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