IDEAS home Printed from https://ideas.repec.org/a/cup/judgdm/v9y2014i5p387-402_3.html
   My bibliography  Save this article

An interpretation of focal point responses as non-additive beliefs

Author

Listed:
  • Romm, Aylit Tina

Abstract

This paper provides a novel interpretation of focal point responses (0, 50, 100 percent) in terms of ambiguous beliefs dynamics that arise in new developments of decision theory such as Choquet expected utility theory. In particular, focal point responses that have been updated from nonfocal responses can be interpreted as non-additive beliefs that account for psychological bias. A focal point response of 100 that has been updated from a nonfocal response can be represented by a non-additive belief that has been updated according to the Overestimating Update Rule. A focal point response of zero that has been updated from a nonfocal response can be represented by a non-additive belief that has been updated according to the Underestimating Update Rule. Focal point responses given consistently over time are not subject to psychological bias, and can be represented by additive probability distributions. Estimation results show such a model to be a very good fit to the data.

Suggested Citation

  • Romm, Aylit Tina, 2014. "An interpretation of focal point responses as non-additive beliefs," Judgment and Decision Making, Cambridge University Press, vol. 9(5), pages 387-402, September.
    • Handle: RePEc:cup:judgdm:v:9:y:2014:i:5:p:387-402_3
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S193029750000677X/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:judgdm:v:9:y:2014:i:5:p:387-402_3. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jdm .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.