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Myopic risk-seeking: The impact of narrow decision bracketing on lottery play

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  • Emily Haisley
  • Romel Mostafa
  • George Loewenstein

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  • Emily Haisley & Romel Mostafa & George Loewenstein, 2008. "Myopic risk-seeking: The impact of narrow decision bracketing on lottery play," Journal of Risk and Uncertainty, Springer, vol. 37(1), pages 57-75, August.
    • Handle: RePEc:kap:jrisku:v:37:y:2008:i:1:p:57-75
    DOI: 10.1007/s11166-008-9041-1
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    19. Shlomo Benartzi & Richard H. Thaler, 1995. "Myopic Loss Aversion and the Equity Premium Puzzle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 73-92.
    20. Daniel Kahneman & Dan Lovallo, 1993. "Timid Choices and Bold Forecasts: A Cognitive Perspective on Risk Taking," Management Science, INFORMS, vol. 39(1), pages 17-31, January.
    21. Charles T. Clotfelter & Philip J. Cook, 1989. "Selling Hope: State Lotteries in America," NBER Books, National Bureau of Economic Research, Inc, number clot89-1, March.
    22. Kearney, Melissa Schettini, 2005. "The Economic Winners and Losers of Legalized Gambling," National Tax Journal, National Tax Association;National Tax Journal, vol. 58(2), pages 281-302, June.
    23. Richard H. Thaler & Eric J. Johnson, 1990. "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, INFORMS, vol. 36(6), pages 643-660, June.
    24. Uri Gneezy & Arie Kapteyn & Jan Potters, 2003. "Evaluation Periods and Asset Prices in a Market Experiment," Journal of Finance, American Finance Association, vol. 58(2), pages 821-838, April.
    25. Weber, Bethany J. & Chapman, Gretchen B., 2005. "Playing for peanuts: Why is risk seeking more common for low-stakes gambles?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 97(1), pages 31-46, May.
    26. Drazen Prelec, 1998. "The Probability Weighting Function," Econometrica, Econometric Society, vol. 66(3), pages 497-528, May.
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    Cited by:

    1. Hsiaw, Alice, 2018. "Goal bracketing and self-control," Games and Economic Behavior, Elsevier, vol. 111(C), pages 100-121.
    2. Natalia Montinari & Michela Rancan, 2018. "Risk taking on behalf of others: The role of social distance," Journal of Risk and Uncertainty, Springer, vol. 57(1), pages 81-109, August.
    3. Kenan Kalaycı & Marta Serra-Garcia, 2016. "Complexity and biases," Experimental Economics, Springer;Economic Science Association, vol. 19(1), pages 31-50, March.
    4. Ernst-Jan Bruijn & Gerrit Antonides, 2022. "Poverty and economic decision making: a review of scarcity theory," Theory and Decision, Springer, vol. 92(1), pages 5-37, February.
    5. Kocher, Martin G. & Krawczyk, Michal & van Winden, Frans, 2014. "‘Let me dream on!’ Anticipatory emotions and preference for timing in lotteries," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 29-40.
    6. Loibl, Cäzilia & Jones, Lauren & Haisley, Emily, 2018. "Testing strategies to increase saving in individual development account programs," Journal of Economic Psychology, Elsevier, vol. 66(C), pages 45-63.
    7. David Comerford & Liam Delaney & Colm Harmon, 2009. "Experimental Tests of Survey Responses to Expenditure Questions," Fiscal Studies, Institute for Fiscal Studies, vol. 30(Special I), pages 419-433, December.
    8. Sarah Brown & Andy Dickerson & Jolian McHardy & Karl Taylor, 2010. "Gambling and the use of credit: an individual and household level analysis," Working Papers 2010005, The University of Sheffield, Department of Economics, revised Feb 2010.
    9. Roy Allen & John Rehbeck, 2021. "Measuring rationality: percentages vs expenditures," Theory and Decision, Springer, vol. 91(2), pages 265-277, September.
    10. Aksoy, Billur & Palma, Marco A., 2019. "The effects of scarcity on cheating and in-group favoritism," Journal of Economic Behavior & Organization, Elsevier, vol. 165(C), pages 100-117.
    11. Kosec, Katrina & Mo, Cecilia Hyunjung & Schmidt, Emily & Song, Jie, 2021. "Perceptions of relative deprivation and women’s empowerment," World Development, Elsevier, vol. 138(C).
    12. Faravelli, Marco & Stanca, Luca, 2012. "Single versus multiple-prize all-pay auctions to finance public goods: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 677-688.
    13. Feria-Domínguez, José Manuel & Jiménez-Rodríguez, Enrique & Sholarin, Ola, 2015. "Tackling the over-dispersion of operational risk: Implications on capital adequacy requirements," The North American Journal of Economics and Finance, Elsevier, vol. 31(C), pages 206-221.
    14. Jieyao Ding, 2012. "A Portfolio of Dilemmas: Experimental Evidence on Choice Bracketing in a Mini-Trust Game," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2012_06, Max Planck Institute for Research on Collective Goods.
    15. Stefan Zeisberger & Thomas Langer & Martin Weber, 2012. "Why does myopia decrease the willingness to invest? Is it myopic loss aversion or myopic loss probability aversion?," Theory and Decision, Springer, vol. 72(1), pages 35-50, January.
    16. Hopfensitz, Astrid, 2009. "Previous outcomes and reference dependence: A meta study of repeated investment tasks with and without restricted feedback," MPRA Paper 16096, University Library of Munich, Germany.
    17. Hopfensitz, Astrid, 2009. "Previous Outcomes and Reference Dependence: A Meta Study of Repeated Investment Tasks with Restricted Feedback," TSE Working Papers 09-087, Toulouse School of Economics (TSE).
    18. Hueber, Laura & Schwaiger, Rene, 2022. "Debiasing through experience sampling: The case of myopic loss aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 87-138.
    19. Annika Lindskog & Peter Martinsson & Haileselassie Medhin, 2022. "Risk-taking and others," Journal of Risk and Uncertainty, Springer, vol. 64(3), pages 287-307, June.
    20. Guo, Jing & He, Xue Dong, 2021. "A new preference model that allows for narrow framing," Journal of Mathematical Economics, Elsevier, vol. 95(C).
    21. Natalia Montinari & Michela Rancan, 2013. "Social preferences under risk : the role of social distance," RSCAS Working Papers 2013/90, European University Institute.
    22. Segovia, Michelle S. & Palma, Marco A. & Nayga Jr., Rodolfo M., 2018. "Food Anticipation Enhances Cognitive Ability of Overweight and Obese in the Presence of Hunger," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266457, Southern Agricultural Economics Association.
    23. Michael Coon & Gwyneth Whieldon, 2016. "Elasticity of Demand and Optimal Prize Distribution for Instant Lottery Games," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 44(4), pages 457-469, December.
    24. Schwaiger, Rene & Hueber, Laura, 2021. "Do MTurkers exhibit myopic loss aversion?," Economics Letters, Elsevier, vol. 209(C).

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    More about this item

    Keywords

    Decision framing; Bracketing; State lotteries; Myopic loss aversion; Peanuts effect; Gambling; C91; D81; I30;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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