Advanced Search
MyIDEAS: Login

Note on "Small Feedback-based Decisions and Their Limited Correspondence to Description-based Decisions"

Contents:

Author Info

  • Pavlo Blavatsky
Registered author(s):

    Abstract

    Barron and Erev (2003) report experimental results revealing differences in risk attitude in small feedback-based problems as opposed to conventional description-based problems. This note shows that theoretical predictions drawing on a simple decision rule, known as the heuristic of relative probability comparisons (HRPC), fit the experimental data in Barron and Erev (2003) surprisingly well: even in the choice situation where the HRPC predicts an exact indifference the actual distribution of subject responses was 49% to 51%.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://iweb.cerge-ei.cz/pdf/wp/Wp218.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp218.

    as in new window
    Length:
    Date of creation: Oct 2003
    Date of revision:
    Handle: RePEc:cer:papers:wp218

    Contact details of provider:
    Postal: P.O. Box 882, Politickych veznu 7, 111 21 Praha 1
    Phone: (+420) 224 005 123
    Fax: (+420) 224 005 333
    Email:
    Web page: http://www.cerge-ei.cz
    More information through EDIRC

    Related research

    Keywords: Heuristic of relative probability comparisons; Feedback-based decisions;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
    2. Thaler, Richard H, et al, 1997. "The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 647-61, May.
    3. Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-24, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Enrique Fatás & Francisca Jiménez & Antonio Morales, 2011. "Controlling for initial endowment and experience in binary choice tasks," Journal of Risk and Uncertainty, Springer, vol. 43(3), pages 227-243, December.
    2. Tal Neiman & Yonatan Loewenstein, 2011. "Reinforcement learning in professional basketball players," Discussion Paper Series dp593, The Center for the Study of Rationality, Hebrew University, Jerusalem.
    3. Gerlinde Fellner & Matthias Sutter, 2008. "Causes, consequences, and cures of myopic loss aversion - An experimental investigation," Department of Economics Working Papers wuwp116, Vienna University of Economics, Department of Economics.
    4. Bruno S. Frey, 2005. "Knight Fever – Towards an Economics of Awards," CESifo Working Paper Series 1468, CESifo Group Munich.
    5. Pavlo R. Blavatskyy, . "Axiomatization of a Preference for Most Probable Winner," IEW - Working Papers 230, Institute for Empirical Research in Economics - University of Zurich.
    6. David Pérez-Castrillo & Róbert F. Veszteg, 2005. "Experimental Evidence on the Multibidding Mechanism," Working Papers 155, Barcelona Graduate School of Economics.
    7. Simon Weidenholzer, 2010. "Coordination Games and Local Interactions: A Survey of the Game Theoretic Literature," Games, MDPI, Open Access Journal, vol. 1(4), pages 551-585, November.
    8. Wasilios Hariskos & Johannes Leder & Kinneret Teodorescu, 2011. "Market Entry Prediction Competition 2010," Games, MDPI, Open Access Journal, vol. 2(2), pages 200-208, April.
    9. Cleotilde Gonzalez & Varun Dutt & Tomás Lejarraga, 2011. "A Loser Can Be a Winner: Comparison of Two Instance-based Learning Models in a Market Entry Competition," Games, MDPI, Open Access Journal, vol. 2(1), pages 136-162, March.
    10. Wieland Mueller & Eline van der Heijden & Tobias J. Klein & Jan Potters, 2011. "Nudges and Impatience: Evidence from a Large Scale Experiment," Vienna Economics Papers 1110, University of Vienna, Department of Economics.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp218. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jana Koudelkova).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.