Ontology highlight
ABSTRACT:
SUBMITTER: Bhatia S
PROVIDER: S-EPMC5619393 | biostudies-literature | 2017 Oct
REPOSITORIES: biostudies-literature
Bhatia Sudeep S Loomes Graham G
Psychological review 20170601 5
We examine the effects of multiple sources of noise in risky decision making. Noise in the parameters that characterize an individual's preferences can combine with noise in the response process to distort observed choice proportions. Thus, underlying preferences that conform to expected value maximization can appear to show systematic risk aversion or risk seeking. Similarly, core preferences that are consistent with expected utility theory, when perturbed by such noise, can appear to display n ...[more]