title: Sequential sampling and paradoxes of risky choice.
abstract: The common-ratio, common-consequence, reflection, and event-splitting effects are some of the best-known findings in decision-making research. They represent robust violations of expected utility theory, and together form a benchmark against which descriptive theories of risky choice are tested. These effects are not currently predicted by sequential sampling models of risky choice, such as decision field theory (Busemeyer & Townsend 1993). This paper, however, shows that a minor extension to decision field theory, which allows for stochastic error in event sampling, can provide a parsimonious, cognitively plausible explanation for these effects. Moreover, these effects are guaranteed to emerge for a large range of parameter values, including best-fit parameters obtained from preexisting choice data.
authors.affiliation: University of Warwick, Coventry CV4 7AL, UK, s.bhatia@warwick.ac.uk.
authors.forename: Sudeep
authors.initials: S
authors.lastname: Bhatia
mesh_terms: D002755:Choice Behavior; D003657:Decision Making; D006801:Humans; D008960:Models, Psychological; D011582:Psychological Theory; D012309:Risk-Taking; D013269:Stochastic Processes