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Testing the Effects of Similarity on Risky Choice: Implications for Violations of Expected Utility

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  • David Buschena
  • David Zilberman

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  • David Buschena & David Zilberman, 1999. "Testing the Effects of Similarity on Risky Choice: Implications for Violations of Expected Utility," Theory and Decision, Springer, vol. 46(3), pages 253-280, June.
    • Handle: RePEc:kap:theord:v:46:y:1999:i:3:p:253-280
    DOI: 10.1023/A:1005066504527
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    1. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    2. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
    3. Harless, David W & Camerer, Colin F, 1994. "The Predictive Utility of Generalized Expected Utility Theories," Econometrica, Econometric Society, vol. 62(6), pages 1251-1289, November.
    4. Harless, David W., 1992. "Predictions about indifference curves inside the unit triangle : A test of variants of expected utility theory," Journal of Economic Behavior & Organization, Elsevier, vol. 18(3), pages 391-414, August.
    5. Leland, Jonathan W, 1994. "Generalized Similarity Judgments: An Alternative Explanation for Choice Anomalies," Journal of Risk and Uncertainty, Springer, vol. 9(2), pages 151-172, October.
    6. Radner, Roy & Rothschild, Michael, 1975. "On the allocation of effort," Journal of Economic Theory, Elsevier, vol. 10(3), pages 358-376, June.
    7. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    8. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
    9. Viscusi, W Kip, 1989. "Prospective Reference Theory: Toward an Explanation of the Paradoxes," Journal of Risk and Uncertainty, Springer, vol. 2(3), pages 235-263, September.
    10. Buschena, David & Zilberman, David, 1995. "Performance of the Similarity Hypothesis Relative to Existing Models of Risky Choice," Journal of Risk and Uncertainty, Springer, vol. 11(3), pages 233-262, December.
    11. Rubinstein, Ariel, 1988. "Similarity and decision-making under risk (is there a utility theory resolution to the Allais paradox?)," Journal of Economic Theory, Elsevier, vol. 46(1), pages 145-153, October.
    12. Peter C. Fishburn, 1970. "Intransitive Indifference in Preference Theory: A Survey," Operations Research, INFORMS, vol. 18(2), pages 207-228, April.
    13. John D. Hey & Chris Orme, 2018. "Investigating Generalizations Of Expected Utility Theory Using Experimental Data," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 3, pages 63-98, World Scientific Publishing Co. Pte. Ltd..
    14. Harless, David, 1993. "Experimental tests of prospective reference theory," Economics Letters, Elsevier, vol. 43(1), pages 71-76.
    15. Conlisk, John, 1989. "Three Variants on the Allais Example," American Economic Review, American Economic Association, vol. 79(3), pages 392-407, June.
    16. Aizpurua, J M & Ichiishi, T. & Nieto, J. & Uriarte, J. R., 1993. "Similarity and Preferences in the Space of Simple Lotteries," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 289-297, June.
    17. Sileo Patrick W., 1995. "Intransitivity of Indifference, Strong Monotonicity, and the Endowment Effect," Journal of Economic Theory, Elsevier, vol. 66(1), pages 198-223, June.
    18. David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
    19. Wilcox, Nathaniel T, 1993. "Lottery Choice: Incentives, Complexity and Decision Time," Economic Journal, Royal Economic Society, vol. 103(421), pages 1397-1417, November.
    20. Conlisk, John, 1988. "Optimization cost," Journal of Economic Behavior & Organization, Elsevier, vol. 9(3), pages 213-228, April.
    21. Camerer, Colin F, 1989. "An Experimental Test of Several Generalized Utility Theories," Journal of Risk and Uncertainty, Springer, vol. 2(1), pages 61-104, April.
    22. Heiner, Ronald A., 1988. "Imperfect decisions in organizations : Toward a theory of internal structure," Journal of Economic Behavior & Organization, Elsevier, vol. 9(1), pages 25-44, January.
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    Cited by:

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    2. Ryoko Wada, "undated". "Does Happiness Affect Attitude Towards Ambiguity? An Experimental Approach To Distinguish Between Subjective Prior And Act Under Ambiguity," Review of Socio - Economic Perspectives 201708, Reviewsep.
    3. Butler, David & Loomes, Graham, 2011. "Imprecision as an account of violations of independence and betweenness," Journal of Economic Behavior & Organization, Elsevier, vol. 80(3), pages 511-522.
    4. Zizzo, Daniel John & Tan, Jonathan H.W., 2007. "Perceived harmony, similarity and cooperation in 2 x 2 games: An experimental study," Journal of Economic Psychology, Elsevier, vol. 28(3), pages 365-386, June.
    5. Guerdjikova, Ani, 2006. "Portfolio Choice and Asset Prices in an Economy Populated by Case-Based Decision Makers," Working Papers 06-13, Cornell University, Center for Analytic Economics.
    6. Guerdjikova, Ani, 2004. "Preference for diversification with similarity considerations," Papers 04-48, Sonderforschungsbreich 504.
    7. Jim Engle-Warnick & Javier Escobal & Sonia Laszlo, 2009. "How do additional alternatives affect individual choice under uncertainty?," Canadian Journal of Economics, Canadian Economics Association, vol. 42(1), pages 113-140, February.
    8. Edward John Dorrell Webb, 2014. "Do we see monopoly or duopoly? The influence of perception on entry deterrence," Discussion Papers 14-20, University of Copenhagen. Department of Economics.
    9. Balcombe, Kelvin & Fraser, Iain, 2024. "A Note on an Alternative Approach to Experimental Design of Lottery Prospects," MPRA Paper 119743, University Library of Munich, Germany.
    10. Buschena, David E. & Atwood, Joseph A., 2011. "Evaluation of similarity models for expected utility violations," Journal of Econometrics, Elsevier, vol. 162(1), pages 105-113, May.
    11. Jim Engle-Warnick & Javier Escobal & Sonia Laszlo, 2006. "The Effect Of An Additional Alternative On Measured Risk Preferences In A Laboratory Experiment In Peru," Departmental Working Papers 2006-10, McGill University, Department of Economics.
    12. Edward J. Webb, 2014. "Perception and quality choice in vertically differentiated markets," Discussion Papers 14-07, University of Copenhagen. Department of Economics.
    13. Konstantinos Katsikopoulos & Gerd Gigerenzer, 2008. "One-reason decision-making: Modeling violations of expected utility theory," Journal of Risk and Uncertainty, Springer, vol. 37(1), pages 35-56, August.
    14. Guerdjikova, Ani, 2008. "Case-based learning with different similarity functions," Games and Economic Behavior, Elsevier, vol. 63(1), pages 107-132, May.
    15. Pavlo Blavatskyy & Valentyn Panchenko & Andreas Ortmann, 2023. "How common is the common-ratio effect?," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 253-272, April.

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