The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates … misperceptions of probability drive the favorite-longshot bias, as suggested by Prospect Theory. -- Pricing under risk ; probability … weighting ; compound lotteries ; favorite-longshot bias …

. -- Ratio bias ; financial incentives ; error rates ; experiment …The ratio bias - according to which individuals prefer to bet on probabilities expressed as a ratio of large numbers to … researchers especially in health economics emphasizing the policy importance of the phenomenon. Although the bias has been …

prospects in a laboratory experiment. Under low stakes, we find the typical risk seeking behavior for small probabilities … section for very small amounts. -- Risk attitude ; incentives ; decision ; experiment …

aversion, decoy effect, anchoring bias, endowment effect, and identifiable-victim bias. In our experiment, DMfO is DMfO …). We conduct a laboratory experiment in which subjects make decision on behalf of themselves and others in eighteen tasks … that measure the following biases: present-bias in time preferences, reflection effect in risk preferences, ambiguity …

An experiment by Tversky and Kahneman (1981) illustrates that people's tendency to evaluate risky decisions separately …. The theory is accompanied by both a real-stakes laboratory experiment and a large-sample survey from the general U ….S. population. Replicating Tversky and Kahneman's original experiment where decisionmakers with prototypical prospect …

This paper presents the results of an experiment that completely measures the utility function and probability …

We report on a laboratory experiment testing for the presence of loss aversion, as separate from risk aversion …

television game show World Poker Tour as a natural experiment. The results show that professional players strategically choose …

abstract from confounding effects of reciprocal behavior, we design an experiment where a public official decides upon … early periods. Risk attitudes measured with a subsequent lottery-choice experiment do not correlate with the behavior … observed in the corruption experiment. We explain our findings by a systematic underestimation of the overall probability of …