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  1. Probability weighting for losses and for gains among smallholder farmers in Uganda.Arjan Verschoor & Ben D’Exelle - 2020 - Theory and Decision 92 (1):223-258.
    Probability weighting is a marked feature of decision-making under risk. For poor people in rural areas of developing countries, how probabilities are evaluated matters for livelihoods decisions, especially the probabilities associated with losses. Previous studies of risky choice among poor people in developing countries seldom consider losses and do not offer a refined tracking of the probability-weighting function. We investigate probability weighting among smallholder farmers in Uganda, separately for losses and for gains, using a method that allows refined tracking of (...)
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  • Skewness seeking: risk loving, optimism or overweighting of small probabilities?Thomas Åstebro, José Mata & Luís Santos-Pinto - 2015 - Theory and Decision 78 (2):189-208.
    In a controlled laboratory experiment we use one sample of college students and one of mature executives to investigate how positive skew influences risky choices. In reduced-form regressions we find that both students and executives make riskier choices when lotteries display positive skew. We estimate decision models to explore three explanations for skew seeking choices: risk-loving, optimism and likelihood insensitivity. We find no role for love for risk as neither students nor executives have convex utility. Both optimism and likelihood insensitivity (...)
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  • Measuring risk aversion with lists: a new bias. [REVIEW]Antoni Bosch-Domènech & Joaquim Silvestre - 2013 - Theory and Decision 75 (4):465-496.
    Various experimental procedures aimed at measuring individual risk aversion involve a list of pairs of alternative prospects. We first study the widely used method by Holt and Laury :1644–1655, 2002), for which we find that the removal of some items from the lists yields a systematic decrease in risk aversion and scrambles the ranking of individuals by risk aversion. This bias, that we call embedding bias, is quite distinct from other confounds that have been previously observed in the use of (...)
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  • Consistency of determined risk attitudes and probability weightings across different elicitation methods.Golo-Friedrich Bauermeister, Daniel Hermann & Oliver Musshoff - 2018 - Theory and Decision 84 (4):627-644.
    In comparing different risk elicitation methods under the assumptions of expected utility theory, previous studies have found significant differences in the elicited risk attitudes. This paper extends this line of research to consider cumulative prospect theory by comparing risk attitudes and probability weightings determined using two elicitation methods: the method by Tanaka et al. :557–571, 2010; TCN method) and the method by Wakker and Deneffe :1131–1150, 1996; WD method). We demonstrate that the two methods reveal significantly different mean values for (...)
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