Journal article
Reverse common ratio effect
Journal of Risk and Uncertainty, Vol.40(3), pp.219-241
2010
Abstract
The results of a new experimental study reveal highly systematic violations of expected utility theory. The pattern of these violations is exactly the opposite of the classical common ratio effect discovered by Allais (1953). Two recent decision theories-stochastic expected utility theory (Blavatskyy 2007) and perceived relative argument model (Loomes 2008)-predicted the existence of a reverse common ratio effect. However, these theories can rationalize only one part of the new experimental data reported in this paper. The other part appears to be neither predicted by existing theories nor documented in the existing empirical studies.
Details
- Title
- Reverse common ratio effect
- Authors/Creators
- P.R. Blavatskyy (Author/Creator) - Universität Innsbruck
- Publication Details
- Journal of Risk and Uncertainty, Vol.40(3), pp.219-241
- Publisher
- Springer
- Identifiers
- 991005541203207891
- Copyright
- © 2010 Springer Science+Business Media, LLC.
- Murdoch Affiliation
- Murdoch University
- Language
- English
- Resource Type
- Journal article
UN Sustainable Development Goals (SDGs)
This output has contributed to the advancement of the following goals:
Source: InCites
Metrics
38 Record Views
InCites Highlights
These are selected metrics from InCites Benchmarking & Analytics tool, related to this output
- Citation topics
- 6 Social Sciences
- 6.122 Economic Theory
- 6.122.1287 Risk Preferences
- Web Of Science research areas
- Business, Finance
- Economics
- ESI research areas
- Economics & Business