Abstract
A descriptive model of choice between simple lotteries is proposed. According to the model, people combine 'absolute' and 'comparative' strategies in choice situations. Three experimental tests of the model are reported. In its limited domain, the model appears superior to Prospect Theory on qualitative grounds, and to 1‐parameter versions of Expected Utility Theory on both qualitative and quantitative grounds.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1-23 |
| Number of pages | 23 |
| Journal | Journal of Behavioral Decision Making |
| Volume | 2 |
| Issue number | 1 |
| DOIs | |
| State | Published - 1989 |
All Science Journal Classification (ASJC) codes
- General Decision Sciences
- Arts and Humanities (miscellaneous)
- Applied Psychology
- Sociology and Political Science
- Strategy and Management
Keywords
- Intransitivity
- Monetary lottery
- Preference reversal
- Prospect theory
- Risky choice
- Utility theory
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