Stewart, N and Chater, N and Stott, HP and Reimers, S (2003) Prospect relativity: How choice options influence decision under risk. J EXP PSYCHOL GEN , 132 (1) 23 - 46. 10.1037/0096-3445.132.1.23.
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Abstract
In many theories of decision under risk (e.g., expected utility theory, rank-dependent utility theory, and prospect theory), the utility of a prospect is independent of other options in the choice set. The experiments presented here show a large effect of the available options, suggesting instead that prospects are valued relative to one another. The judged certainty equivalent for a prospect is strongly influenced by the options available. Similarly, the selection of a preferred prospect is strongly influenced by the prospects available, Alternative theories of decision under risk (e.g., the stochastic difference model, multialternative decision field theory, and range frequency theory), where prospects are valued relative to one another, can provide an account of these context effects.
| Type: | Article |
|---|---|
| Title: | Prospect relativity: How choice options influence decision under risk |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1037/0096-3445.132.1.23 |
| Keywords: | RANK-DEPENDENT UTILITY, ABSOLUTE IDENTIFICATION, SELECTIVE ACCESSIBILITY, RATIONAL EXPECTATIONS, PREFERENCE-REVERSAL, REGRET THEORY, FIELD-THEORY, UNCERTAINTY, JUDGMENT, MODEL |
| UCL classification: | UCL > School of Life and Medical Sciences > Faculty of Brain Sciences > Psychology and Language Sciences (Division of) > Cognitive, Perceptual and Brain Sciences |
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