Cookies?
Library Header Image
LSE Research Online LSE Library Services

Risk, complexity, and deviations from expected-value maximization: results of a lottery choice experiment

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.
Identification Number: 10.1016/S0167-4870(99)00031-8

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
Subjects: H Social Sciences > HB Economic Theory
Sets: Collections > Economists Online
Departments > Economics
Date Deposited: 21 May 2008 10:05
Last Modified: 01 Oct 2010 08:54
URI: http://eprints.lse.ac.uk/id/eprint/4944

Actions (login required)

View Item View Item