Effect of Choice Set on Valuation of Risky Prospects

摘要: Current models of decision making under risk assume access to the absolute magnitudes gamble attributes. The two experiments presented here provide evidence that decisions are based, in addition, on the context decision. In Experiment 1 set of options offered as certainty equivalents was shown to determine value simple gambles form “p chance £x”. 2 employed a novel procedure where payment structure such that it optimal for participants truthful equivalents. Again, context provided by certainty equivalents influenced choice equivalent.