Modeling choice and valuation in decision experiments

Psychol Rev. 2010 Jul;117(3):902-24. doi: 10.1037/a0019807.

Abstract

This article develops a parsimonious descriptive model of individual choice and valuation in the kinds of experiments that constitute a substantial part of the literature relating to decision making under risk and uncertainty. It suggests that many of the best known "regularities" observed in those experiments may arise from a tendency for participants to perceive probabilities and payoffs in a particular way. This model organizes more of the data than any other extant model and generates a number of novel testable implications which are examined with new data.

MeSH terms

  • Choice Behavior*
  • Decision Making*
  • Decision Theory
  • Humans
  • Judgment*
  • Models, Psychological*
  • Probability
  • Psychology, Experimental / methods
  • Reward
  • Risk-Taking