Wu, George; Gonzalez, Richard - In: Management Science 45 (1999) 1, pp. 74-85
In most real-world decisions, consequences are tied explicitly to the outcome of events. Previous studies of decision … making under uncertainty have indicated that the psychological weight attached to an event, called a decision weight, usually … differs from the probability of that event. We investigate two sources of nonlinearity of decision weights: subadditivity of …