The influence of probability format on elicited certainty equivalents

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

We compare six different formats for the presentation of probabilities, in terms of the certainty equivalents that they elicit from human participants, and the probability-weighting parameters that participants' decisions imply. We find substantial differences among formats, including a visual analogue of the ratio bias. The results indicate that experimental results concerning decision making under risk can be greatly affected by the presentation format employed.

Original languageEnglish (US)
Title of host publicationProgress in Brain Research
PublisherElsevier B.V.
Pages151-171
Number of pages21
DOIs
StatePublished - 2013
Externally publishedYes

Publication series

NameProgress in Brain Research
Volume202
ISSN (Print)0079-6123
ISSN (Electronic)1875-7855

Keywords

  • Certainty equivalent
  • Format
  • Probability
  • Probability transformation
  • Ratio bias

ASJC Scopus subject areas

  • General Neuroscience

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