The Effect of Probabilities on the Subjective Evaluation of Lotteries

Description: Delving into the impact of probabilities on decision-making, this book challenges the limitations of expected utility theory in capturing real-world behavior. The author questions the assumption that choices consistently align with the theory's predictions and suggests that probability plays a significant role in shaping subjective evaluations. Through a simple experiment where subjects evaluated lotteries with varying odds, the author demonstrates a consistent bias towards increasing risk aversion with increasing odds. This suggests that individuals may process probabilities imperfectly, resulting in deviations from the expected utility framework. The book provides a compelling examination of the psychological factors underlying decision-making, offering valuable insights into the complexities of human behavior under uncertainty. Forgotten Books publishes hundreds of thousands of rare and classic books.This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works. This text has been digitally restored from a historical edition. Some aesthetic errors may persist, however it has been deemed that any such will not detract from the work's significant historical value. The digital edition of all books may be viewed on our website before purchase.

Price: 18.08 USD

Location: New York NY

End Time: 2024-09-28T09:06:07.000Z

Shipping Cost: 0 USD