Huck, Steffen and Weizsacker, Georg (1999) Risk, complexity, and deviations from expected-value maximization: results of a lottery choice experiment. Journal of Economic Psychology, 20 (6). pp. 699-715. ISSN 0167-4870
Full text not available from this repository.Abstract
Varying several parameters of single-stage lottery choice tasks we investigate the question which features of a decision task lead subjects to deviate from maximizing expected monetary value (EV). Despite small differences in EV between the two lotteries in the choice sets, the subjects on average chose the lottery with the higher EV in every task. Risk avoidance occurs, but not consistently over all tasks. Further results are that subjects prefer less complex lotteries over more complex ones, and that risk matters the more the less complex the decision task is.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.sciencedirect.com/science/journal/01674... |
| Additional Information: | © 1999 Elsevier |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HB Economic Theory |
| JEL classification: | C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty |
| Date Deposited: | 21 May 2008 10:05 |
| Last Modified: | 20 Oct 2024 23:51 |
| URI: | http://eprints.lse.ac.uk/id/eprint/4944 |
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