Strength of evidence, judged probability, and choice under uncertainty.
This paper traces, within subjects, the relationship between assessed strength of evidence, judgments of probability, and decisions under uncertainty. The investigation relies on the theoretical framework provided by support theory (Tversky & Koehler, 1994; Rottenstreich & Tversky, 1997), a nonextensional model of judgment under uncertainty. Fans of professional basketball (N = 50) judged the probability that each of eight teams, four divisions, and two conferences would win the National Basketball Association championship. Additionally, participants rated the relative strength of each team, judged the probability that a given team would win the championship assuming a particular pairing in the finals, priced prospects contingent on the winner of the championship, and made choices between chance prospects. The data conformed to the major tenets of support theory, and the predicted relationships between assessed strength of evidence, hypothetical support, judged probabilities, and choices under uncertainty also held quite well.
Fox
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Fuqua School of Business, Duke University, Durham, NC 27708, USA. cfox@mail.duke.edu
D000328:Adult; D002755:Choice Behavior; D005260:Female; D006801:Humans; D007600:Judgment; D008297:Male; D015233:Models, Statistical; D011336:Probability