Mar 1, 2018

In Press: When Payoffs Look Like Probabilities

Shlomi Sher, Craig R.M. McKenzie, and I have a new ARTICLE IN PRESS at the Journal of Experimental Psychology: General. It's the result of a really fun project that raises some interesting questions about how numbers affect risk preferences. Here's the short abstract:

Decision makers are commonly seen as subjectively evaluating monetary gains with a concave “value function,” and probabilities with an inverse-S-shaped “weighting function.” But in experimental studies, form and content are often confounded: While probabilities are bounded, monetary gains are usually unbounded above. We hypothesized that bounded representations of monetary gains can yield inverse-S-shaped value functions, and unbounded representations of probabilities concave weighting functions. In several experiments, we document novel preference reversals predicted by our hypothesis.