bias | but one that represents an optimal Bayesian decision, given the limitations of the mental representation of the … laboratory experiment …

need for a nonlinear utility-of-wealth function, and instead results from a sort of perceptual bias — but one that … numerical cognition, and test its ability to explain the choice frequencies that we observe in a laboratory experiment …

bias | but one that represents an optimal Bayesian decision, given the limitations of the mental representation of the … laboratory experiment. …

need for a nonlinear utility-of-wealth function, and instead results from a sort of perceptual bias -- but one that … numerical cognition, and test its ability to explain the choice frequencies that we observe in a laboratory experiment …

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 …