Work

When a risky prospect is valued more than its best possible outcome

Year: 2012

Type: article

Abstract: 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.

Source: Judgment and Decision Making

DOI: 10.1017/s1930297500001790

Authors: Andreas C. Drichoutis, Rodolfo M. Nayga, Jayson L. Lusk, Panagiotis Lazaridis

Institutions: University of Ioannina, University of Arkansas System, University of Arkansas at Fayetteville, Oklahoma State University, Agricultural University of Athens

Language: English

Topic: Decision-Making and Behavioral Economics

Subfield: General Decision Sciences

Field: Decision Sciences

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $3,550

OpenAlex ID: W1569298015