Modeling choice and valuation in decision experiments.
This article develops a parsimonious descriptive model of individual choice and valuation in the kinds of experiments that constitute a substantial part of the literature relating to decision making under risk and uncertainty. It suggests that many of the best known "regularities" observed in those experiments may arise from a tendency for participants to perceive probabilities and payoffs in a particular way. This model organizes more of the data than any other extant model and generates a number of novel testable implications which are examined with new data.
Loomes
Graham
G
Department of Economics, University of Warwick, Coventry, United Kingdom. g.loomes@warwick.ac.uk
D002755:Choice Behavior; D003657:Decision Making; D003662:Decision Theory; D006801:Humans; D007600:Judgment; D008960:Models, Psychological; D011336:Probability; D011589:Psychology, Experimental / Q000379:methods; D012201:Reward; D012309:Risk-Taking