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We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions - characterized by substantial overweighting of small...
Persistent link: https://www.econbiz.de/10009621724
We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates 'standard' risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions - characterized by substantial overweighting of small...
Persistent link: https://www.econbiz.de/10013315858
understand the consumer decision-making process in the service encounter. On the basis of this a WiFi access point was chosen …
Persistent link: https://www.econbiz.de/10014107192
We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions -- characterized by substantial overweighting of small...
Persistent link: https://www.econbiz.de/10013094473
Motivated by the literature on ``choice overload'', we study a boundedly rational agent whose choice behavior admits a \textit{monotone threshold representation}: There is an underlying rational benchmark, corresponding to maximization of a utility function $v$, from which the agent's choices...
Persistent link: https://www.econbiz.de/10011671902
thereby distort optimal search. In addition, urgency may alter decision-making processes and thereby the salience of regret … interaction on search behavior in a pre-registered, theory-based, and well-powered experiment. We find that urgency reduces … decision times and perceived decision quality but does not alter search length. Only very inexperienced decision-makers buy …
Persistent link: https://www.econbiz.de/10013224079
-maximizing recommendation on the basis of that signal. The individuals have identical preferences. The group makes a decision that maximizes the …
Persistent link: https://www.econbiz.de/10011684935
How can economic theory explain the reasons why consumers adopt innovations? Using the example of innovations in washing machines two approaches are compared. The first focuses in the manner of household production theory on changes in constraints without specifying preferences, leading to the...
Persistent link: https://www.econbiz.de/10010286759
Elicitation procedures (e.g., choice, valuation, matching, joint/separate evaluation) may generate reversed preferences between alternatives. Yet procedure-dependent preferences can be endogenous. When attribute importance is imperfectly known, people can engage in costly information...
Persistent link: https://www.econbiz.de/10013314068
that are extracted from a classroom experiment. We find that more-loss-averse students leave more questions unanswered and … evidence that loss aversion parameters extracted from lottery choices in a controlled experiment have predictive power in a … field environment of decision making under uncertainty. Furthermore, the degree of loss aversion appears to be persistent …
Persistent link: https://www.econbiz.de/10012064831