0156073 - NHU-N 20033010 RIV CZ eng J - Journal Article
Blavatskyy, Pavlo R.
Note on "Small feedback-based decisions and their limited correspondence to description-based decisions".
CERGE-EI Working Paper Series. č. 218 (2003), s. 1-8. ISSN 1211-3298
Institutional research plan: CEZ:AV0Z7085904
Keywords : heuristic of relative probability comparisons * feedback-based decisions
Subject RIV: AH - Economics

Barron and Erev (2003) report experimental results revealing differences in risk attitude in small feedback-based problems as opposed to conventional description-based problems. This note shows that theoretical predictions drawing on a simple decision rule, known as the heuristic of relative probability comparisons (HRPC), fit the experimental data in Barron and Erev (2003) surprisingly well: even in the choice situation where the HRPC predicts an exact indifference the actual distribution of subject responses was 49% to 51%.
Permanent Link: http://hdl.handle.net/11104/0053540