Ontology highlight
ABSTRACT:
SUBMITTER: Zhong S
PROVIDER: S-EPMC2795855 | biostudies-literature | 2009
REPOSITORIES: biostudies-literature
Zhong Songfa S Israel Salomon S Xue Hong H Ebstein Richard P RP Chew Soo Hong SH
PloS one 20091231 12
Decision making often entails longshot risks involving a small chance of receiving a substantial outcome. People tend to be risk preferring (averse) when facing longshot risks involving significant gains (losses). This differentiation towards longshot risks underpins the markets for lottery as well as for insurance. Both lottery and insurance have emerged since ancient times and continue to play a useful role in the modern economy. In this study, we observe subjects' incentivized choices in a co ...[more]