An empirical investigation into the propensity of reckless decision making within the high pressure environment of Deal or No Deal

Richard Whitle, Jonathan Rae and Chris Pyke
Authors registered in the RePEc Author Service: Richard Whittle

MPRA Paper from University Library of Munich, Germany

Abstract: This paper discusses human attitudes towards risk and the development of expected utility models, laying the foundations for the creation of prospect theory in 1979. It proceeds to analyse the decisions of contestants on the popular TV game show Deal or No Deal to attempt to observe any evidence of differing levels of risk aversion under losses and gains as predicted by prospect theory. The results reveal some evidence of decreased risk aversion in the domains of losses and gains, with contestants displaying behaviour consistent with the break-even and house-money effects. We conclude there may be enough evidence of variable reference points to warrant further investigation, and propose suggestions for further research

Keywords: Decision making under uncertainty; behavioural economics; behavioural finance; biases & heuristics; Prospect Theory. (search for similar items in EconPapers)
JEL-codes: C0 C10 C93 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cbe and nep-upt
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https://mpra.ub.uni-muenchen.de/66832/1/MPRA_paper_66832.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/66913/1/MPRA_paper_66832.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/81396/8/MPRA_paper_81396.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:66832

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