Practical Application and Discernability of Risky Choice Models
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Cites background from "Practical Application and Discernab..."
...In addition, Just & Just (2009) demonstrate that the EUT hypothesis cannot be rejected because perceptions and preferences, which both affect behaviour under risk, cannot be measured separately....
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References
478 citations
"Practical Application and Discernab..." refers background or methods in this paper
...…overconfidence (Alpert and Raiffa 1982; Camerer 1995; Lichtenstein, Frischhoff, and Phillips 1982; Murphy and Winkler 1974), availability bias (Tversky and Kahneman 1982), law of small numbers bias (Tversky and Kahneman 1982), representative bias (Tversky and Kahneman 1982), and conservatism…...
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...The law of small numbers is a form of judgment bias that refers to the tendency to rely too heavily on experience when only a few observations are available (Tversky and Kahneman 1982)....
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...…(Alpert and Raiffa 1982; Camerer 1995; Lichtenstein, Frischhoff, and Phillips 1982; Murphy and Winkler 1974), availability bias (Tversky and Kahneman 1982), law of small numbers bias (Tversky and Kahneman 1982), representative bias (Tversky and Kahneman 1982), and conservatism (Edwards 1982)....
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...11 Prospect Theory To consider prospect theory, we use the modifications introduced by Tversky and Kahneman (1992), which are applied in a manner similar to Quiggin’s rank-dependent utility model....
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...For example, the generalized prospect theory of Tversky and Kahneman (1992) suggests...
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422 citations
408 citations
"Practical Application and Discernab..." refers background in this paper
...One approach cleverly manipulates the probability distributions to test for violations of models (e.g., MacCrimmon and Larsson 1979; Lichtenstein and Slovic 1971)....
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378 citations
"Practical Application and Discernab..." refers background in this paper
...For example, Chavas and Holt (1996) assume specific parametric forms for risk preferences and perceptions of the consequences of risky decisions, and then estimate the associated parameters to explain observed behavior....
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352 citations
"Practical Application and Discernab..." refers background in this paper
...Some have even been resurrected from earlier eras (e.g., the safety rules of Roy 1952, Katoka 1963, and Telser 1955-6)....
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