Taking Precautions is Not the Same as Choosing Gambles: Prospect Theory and the Use of Probability in Risky Choices
Conference paper
Kusev, P., Ayton, P., van Schaik, P. and Chater, N. (2006). Taking Precautions is Not the Same as Choosing Gambles: Prospect Theory and the Use of Probability in Risky Choices. 27th Annual Conference of the Society for Judgment and Decision Making. Houston, Texas 17 - 20 Nov 2006
Authors | Kusev, P., Ayton, P., van Schaik, P. and Chater, N. |
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Type | Conference paper |
Abstract | In four experiments we studied precautionary decisions where participants decided whether or not to adopt a specified precaution with a known cost in the face of a described risk. We find that both the weighting function and the value function required to model these decisions exhibit different properties for precautionary decisions than those observed for choices between gambles. Overweighting of probability is observed for moderate and high probabilities – a finding not anticipated by Prospect theory. Our results highlight a need for differentiation between models to account for precautionary behavior and models of other types of decision-making under risk\uncertainty. |
Year | 2006 |
Web address (URL) | https://sjdm.org/programs/2006-program.pdf |
Accepted author manuscript | License File Access Level Open |
Publication dates | |
Online | 17 Nov 2006 |
Publication process dates | |
Accepted | 10 Aug 2006 |
Deposited | 02 Nov 2022 |
Web address (URL) of conference proceedings | https://sjdm.org/programs/2006-program.pdf |
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https://openresearch.lsbu.ac.uk/item/92357
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Accepted author manuscript
Kusev_Ayton_van Schaik_Chater_2006.pdf | ||
License: CC BY 4.0 | ||
File access level: Open |
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