Note on "Small Feedback-based Decisions and Their Limited Correspondence to Description-based Decisions"

Pavlo Blavatsky

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: Barron and Erev (2003) report experimental results revealing differences in risk attitude in small feedback-based problems as opposed to conventional description-based problems. This note shows that theoretical predictions drawing on a simple decision rule, known as the heuristic of relative probability comparisons (HRPC), fit the experimental data in Barron and Erev (2003) surprisingly well: even in the choice situation where the HRPC predicts an exact indifference the actual distribution of subject responses was 49% to 51%.

Keywords: Heuristic of relative probability comparisons; Feedback-based decisions (search for similar items in EconPapers)
JEL-codes: C91 D11 (search for similar items in EconPapers)
Date: 2003-10
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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