- PsycARTICLES:
- Citation and Abstract
Prospect relativity: How choice options influence decision under risk.
Stewart, Neil; Chater, Nick; Stott, Henry P.; Reimers, Stian
Journal of Experimental Psychology: General, Vol 132(1), Mar 2003, 23-46.
In many theories of decision under risk (e.g., expected utility theory, rank-dependent utility theory, and prospect theory), the utility of a prospect is independent of other options in the choice set. The experiments presented here show a large effect of the available options, suggesting instead that prospects are valued relative to one another. The judged certainty equivalent for a prospect is strongly influenced by the options available. Similarly, the selection of a preferred prospect is strongly influenced by the prospects available. Alternative theories of decision under risk (e.g., the stochastic difference model, multialternative decision field theory, and range frequency theory), where prospects are valued relative to one another, can provide an account of these context effects. (PsycINFO Database Record (c) 2010 APA, all rights reserved)
- Digital Object Identifier:
- 10.1037/0096-3445.132.1.23
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