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An agent wants to derive her belief over outcomes based on past observations collected in her database (memory). There is well establish evidence in the psychology and marketing literature that agents consistently fail (or choose not) to process all available information. An agent might be...
Persistent link: https://www.econbiz.de/10010403098
We study the problem of elicitation of subjective beliefs of an agent when the beliefs are ambiguous (the set of beliefs is a non-singleton set) and the agent's preference exhibits ambiguity aversion; in particular, as represented by alpha-maxmin preferences. We construct a direct revelation...
Persistent link: https://www.econbiz.de/10012969749
preferences. Among the behavioral patterns that allow for a clear-cut interpretation on the decision level, we find that roughly …
Persistent link: https://www.econbiz.de/10014556632
-specific and decisionspecific variation in attention and verify our framework in an eye-tracking experiment on risky choice. We …
Persistent link: https://www.econbiz.de/10012510861
anchoring phenomenon in financial decision-making. We find that contestants anchor heavily on the initial dollar value of a clue … in their wagering decision, even though there exists no rational reason to do so. More than half of all wagers occur … manifests itself among college students. Overall, our findings suggest anchoring plays a substantial role in financial decision …
Persistent link: https://www.econbiz.de/10011526727
thereby distort optimal search. In addition, urgency may alter decision-making processes and thereby the salience of regret …Perceived urgency and regret are common in many sequential search processes; for example, sellers often pressure buyers … in search of the best offer, both time-wise and in terms of potential regret of forgoing unique purchasing opportunities …
Persistent link: https://www.econbiz.de/10012534681
thereby distort optimal search. In addition, urgency may alter decision-making processes and thereby the salience of regret …Perceived urgency and regret are common in many sequential search processes; for example, sellers often pressure buyers … in search of the best offer, both time-wise and in terms of potential regret of forgoing unique purchasing opportunities …
Persistent link: https://www.econbiz.de/10014476728
I experimentally examine whether feedback about others' choices provides an anchor for decision-making under ambiguity …
Persistent link: https://www.econbiz.de/10010364762
overconfidence. Cognitive uncertainty represents a decision maker's uncertainty about her action optimality. We present a simple …Overconfidence is one of the most ubiquitous cognitive bias. There is copious evidence of overconfidence being relevant … model of overconfidence based on the concept of cognitive uncertainty. The model relates the concepts theoretically and …
Persistent link: https://www.econbiz.de/10013257953
Prior research suggests that those who rely on intuition rather than effortful reasoning when making decisions are less averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of causality. In this paper, we present experimental...
Persistent link: https://www.econbiz.de/10010200793