When a risky prospect is valued more than its best possible outcome
In this paper, we document a violation of normative and descriptive models of decision making under risk. In contrast to uncertainty effects found by Gneezy, List and Wu (2006), some subjects in our experiments valued lotteries more than the best possible outcome. We show that the overbidding effect...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Cambridge University Press
2012-01-01
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| Series: | Judgment and Decision Making |
| Subjects: | |
| Online Access: | https://www.cambridge.org/core/product/identifier/S1930297500001790/type/journal_article |
| _version_ | 1797701658983006208 |
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| author | Andreas C. Drichoutis Rodolfo M. Nayga Jayson L. Lusk Panagiotis Lazaridis |
| author_facet | Andreas C. Drichoutis Rodolfo M. Nayga Jayson L. Lusk Panagiotis Lazaridis |
| author_sort | Andreas C. Drichoutis |
| collection | DOAJ |
| description | In this paper, we document a violation of normative and descriptive models of decision making under risk. In contrast to uncertainty effects found by Gneezy, List and Wu (2006), some subjects in our experiments valued lotteries more than the best possible outcome. We show that the overbidding effect is more strongly related to individuals’ competitiveness traits than comprehension of the lottery’s payoff mechanism. |
| first_indexed | 2024-03-12T04:38:53Z |
| format | Article |
| id | doaj.art-4523f3c6e5b146fd8ed6e5d3a9432d3f |
| institution | Directory Open Access Journal |
| issn | 1930-2975 |
| language | English |
| last_indexed | 2024-03-12T04:38:53Z |
| publishDate | 2012-01-01 |
| publisher | Cambridge University Press |
| record_format | Article |
| series | Judgment and Decision Making |
| spelling | doaj.art-4523f3c6e5b146fd8ed6e5d3a9432d3f2023-09-03T09:46:13ZengCambridge University PressJudgment and Decision Making1930-29752012-01-01711810.1017/S1930297500001790When a risky prospect is valued more than its best possible outcomeAndreas C. Drichoutis0Rodolfo M. Nayga1Jayson L. Lusk2Panagiotis Lazaridis3Department of Economics, University of Ioannina, University campus, 45110, Ioannina, GreeceDepartment of Agricultural Economics & Agribusiness, University of Arkansas, USADepartment of Agricultural Economics, Oklahoma State University, USADepartment of Agricultural Economics & Rural Development, Agricultural University of Athens, GreeceIn this paper, we document a violation of normative and descriptive models of decision making under risk. In contrast to uncertainty effects found by Gneezy, List and Wu (2006), some subjects in our experiments valued lotteries more than the best possible outcome. We show that the overbidding effect is more strongly related to individuals’ competitiveness traits than comprehension of the lottery’s payoff mechanism.https://www.cambridge.org/core/product/identifier/S1930297500001790/type/journal_articleDecision making under riskcompetitivenesslottery payoff comprehensionexperiments |
| spellingShingle | Andreas C. Drichoutis Rodolfo M. Nayga Jayson L. Lusk Panagiotis Lazaridis When a risky prospect is valued more than its best possible outcome Judgment and Decision Making Decision making under risk competitiveness lottery payoff comprehension experiments |
| title | When a risky prospect is valued more than its best possible outcome |
| title_full | When a risky prospect is valued more than its best possible outcome |
| title_fullStr | When a risky prospect is valued more than its best possible outcome |
| title_full_unstemmed | When a risky prospect is valued more than its best possible outcome |
| title_short | When a risky prospect is valued more than its best possible outcome |
| title_sort | when a risky prospect is valued more than its best possible outcome |
| topic | Decision making under risk competitiveness lottery payoff comprehension experiments |
| url | https://www.cambridge.org/core/product/identifier/S1930297500001790/type/journal_article |
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