AskEssays.com - Discover essay samples

Preference reversal and expert

4.9 of 5.0 (133 reviews)

Contains
276 words
Category
Other

Preference reversal and expert Page 1
The above thumbnails are of reduced quality. To view the work in full quality, click download.

Preference reversal and expert


Subjects in gambling tasks that involve both choice and pricing show a pattern of responses known as preference reversal. That is, although subjects in a choice condition generally will give higher preference ratings to 'safe?, high-probability/low-payoff, bets than to ?longshot?, low-probability/high-payoff, bets, when they are asked in a pricing condition to generate an amount of money that they would accept to avoid the gamble altogether they tend to give higher values for longshots over safer bets. Tversky, Slovic, and Kahneman (1990) demonstrate that among the several possible actions that subjects could be taking to produce this pattern, the critical factor appears to be the overpricing of the longshot bets. If subjects are actually offered a monetary figure (hypothetically) by the experimenter to replace the gamble, they will accept this figure even though it is lower than the figure that they generated in the pricing condition. Tversky et al. (1990) further showed that this overpricing is largely due to a phenomena known as scale compatibility, which involves certain biases when the response required by the subject is in the same units as the factors influencing the decision. Since the payoffs of the bets and the buy-out prices assigned to them are both monetary values, this leads people to give greater weight to the payoff value of the bets when asked to price them (a situation of compatibility) than when asked to choose between them (a situation of non-compatibility).

The development of expertise in avoiding preference reversal, then, would have to involve the circumvention of the compatibility effect. One possible way in which this could occur would involve subjects ...

You are currently seeing 50% of this paper.

You're seeing 276 words of 552.

Keywords: preference reversal phenomenon, what is preference reversal, preference reversals between digital and physical goods, preference reversal example

Similar essays


Writing process

Writing a paper on the writing process is pretty hard. The writing process is different from one person to another. You come across questions like, ?What exactly is the writing process?? and ?Must you follow one persons writing process if yours is different?? This is where I came across the answer to my questions, write however you wish to writ...

39 reviews
Download
The Ute Indians

were a group of Indians that lived mostly around the mountainous area of Utah and Colorado near the Colorado River. But they sometimes lived in dessert areas also. The word Ute comes from the word eutaw or yuta which means dwellers on the top of mountains. Although it is not certain where they originated but it is assumed that they arrived to th...

201 reviews
Download
Annexation in texas the basics

Annexation in texas - the basics The legal authority of Texas cities to annex, and the reasons Texas has been a liberal annexer as well as why the pace of annexation has slowed since 1970 are numerous. In retrospect, this paper will discuss and bring to the table some of the finer points of these statements. Annexation was, for a long time, a...

121 reviews
Download
Masculinity

The definition of masculinity ; Is the fact of being a man or having qualities considered typical of a man. I was stuck in that sentence that what is the qualities considered typical of a man. What is the quality of man, what is considered as a typical of a man? 1. Identities According to Victor, since the 1960s the cha...

88 reviews
Download
Drugs and alcohol

For several decades, drugs and alcohol have been a major problem in our society. Not only has the drug problem increased but drug related problems are on the rise. There is no crime that kills more teenagers in the world then alcohol does. These substances affect the body in many ways, including the exchange of information within the brain, i...

123 reviews
Download
Atsisiųsti šį darbą