Attention-driven probability weighting

Di Wang

Economics Letters, 2021, vol. 203, issue C

Abstract: This paper presents a theory of choice under risk based on attention and salience. With a smooth salience function and the incorporation of reference-dependence, the model provides a comprehensive account for the observation of nonlinear and context-dependent probability weighting functions.

Keywords: Choice under risk; Salience; Attention; Probability weighting (search for similar items in EconPapers)
JEL-codes: D81 D91 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:203:y:2021:i:c:s0165176521001154

DOI: 10.1016/j.econlet.2021.109838

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