When a risky prospect is valued more than its best possible outcome (Journal article)

Drichoutis, A. C./ Nayga, R. M./ Lusk, J. L./ Lazaridis, P.


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.
Institution and School/Department of submitter: Πανεπιστήμιο Ιωαννίνων. Σχολή Οικονομικών και Κοινωνικών Επιστημών. Τμήμα Οικονομικών Επιστημών
Keywords: decision making under risk,competitiveness,lottery payoff comprehension,experiments,preference reversal phenomenon,aversion,auctions
URI: http://olympias.lib.uoi.gr/jspui/handle/123456789/11324
ISSN: 1930-2975
Link: <Go to ISI>://000300401900001
Appears in Collections:Άρθρα σε επιστημονικά περιοδικά ( Ανοικτά)

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