ICPS
2021 APS Virtual Convention
People Behave As If They Anticipate Regret Conditional on Experiencing a Bad Outcome
Risky decision-making models assume decision-makers consider absolute improvements in chances when considering whether to invest to reduce risk. We find people instead behave as if they consider relative reductions in bad outcomes. This drives non-normative risk preferences, with the same participants behaving both risk-seeking and risk-averse within the same task.
Chairs & Discussants
- William RyanSpeaker
University of California, Berkeley - Stephen BaumDiscussant
University of California, Berkeley, Haas School of Business - Ellen EversDiscussant
University of California, Berkeley, Haas School of Business
