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Experimental evidence for attractions to chance

Author

Listed:
  • Albers, Wulf

    (Center for Mathematical Economics, Bielefeld University)

  • Pope, Robin

    (Center for Mathematical Economics, Bielefeld University)

  • Selten, Reinhard

    (Center for Mathematical Economics, Bielefeld University)

  • Vogt, Bodo

    (Center for Mathematical Economics, Bielefeld University)

Abstract

Divide the decision-maker's future into: (i) a pre-outcome period (lasting from the decision until the outcome of that decision is known), and (ii) a sequel postoutcome period (beginning when the outcome becomes known). Anticipated emotions in both periods may influence the decision, in particular, with regard to an outcome that matters to the person, the enjoyable tension from not yet knowing what this outcome will be. In the experiments presented, lottery choice can be explained by this attraction to chance, and cannot be explained by either convex von Neumann-Morgenstern utility, or by rank-dependent risk-loving weights: attraction to chance is a separate motivator.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Albers, Wulf & Pope, Robin & Selten, Reinhard & Vogt, Bodo, 2017. "Experimental evidence for attractions to chance," Center for Mathematical Economics Working Papers 317, Center for Mathematical Economics, Bielefeld University.
    • Handle: RePEc:bie:wpaper:317
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    File URL: https://pub.uni-bielefeld.de/download/2909865/2910154
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    2. Heldmann, Marcus & Vogt, Bodo & Heinze, Hans-Jochen & Münte, Thomas, 2009. "Different methods to define utility functions yield different results and engage different neural processes," FEMM Working Papers 09014, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    3. Bischoff, Ivo, 2007. "Institutional choice versus communication in social dilemmas--An experimental approach," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 20-36, January.
    4. Fischbacher, Urs & Thöni, Christian, 2008. "Excess entry in an experimental winner-take-all market," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 150-163, July.
    5. Pablo Brañas-Garza, 2006. "Why gender based game theory?," ThE Papers 06/08, Department of Economic Theory and Economic History of the University of Granada..
    6. Kjell Hausken, 2007. "Book Review," Theory and Decision, Springer, vol. 62(3), pages 303-309, May.
    7. Heufer, Jan, 2013. "Quasiconcave preferences on the probability simplex: A nonparametric analysis," Mathematical Social Sciences, Elsevier, vol. 65(1), pages 21-30.
    8. Battigalli, Pierpaolo & Dufwenberg, Martin, 2009. "Dynamic psychological games," Journal of Economic Theory, Elsevier, vol. 144(1), pages 1-35, January.
    9. Marcus Heldmann & Ralf Morgenstern & Thomas Münte & Bodo Vogt, 2009. "Is brain activity observable that leads to an evaluation of a probability of 0.5 that is different from 0.5 in binary lottery choices?," FEMM Working Papers 09003, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    10. Timm Teubner & Marc T. P. Adam & Claudia Niemeyer, 2015. "Measuring risk preferences in field experiments: Proposition of a simplified task," Economics Bulletin, AccessEcon, vol. 35(3), pages 1510-1517.
    11. Pablo Brañas Garza & Francisca Jiménez Jiménez & Antonio Morales, 2004. "Strategic Uncertainty and Risk Attitudes:"The Experimental Connection"," Economic Working Papers at Centro de Estudios Andaluces E2004/12, Centro de Estudios Andaluces.
    12. Pope, Robin & Leitner, Johannes & Leopold-Wildburger, Ulrike, 2009. "Expected utility versus the changes in knowledge ahead," European Journal of Operational Research, Elsevier, vol. 199(3), pages 892-901, December.
    13. Robin Pope & Reinhard Selten & Sebastian Kube & Jürgen von Hagen, 2006. "Experimental Evidence on the Benefits of Eliminating Exchange Rate Uncertainties and Why Expected Utility Theory causes Economists to Miss Them," Labsi Experimental Economics Laboratory University of Siena 010, University of Siena.
    14. Pope, Robin, 2004. "Biases from omitted risk effects in standard gamble utilities," Journal of Health Economics, Elsevier, vol. 23(4), pages 695-735, July.

    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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