Distortion of probability and outcome information in risky decisions
Author
Abstract
Suggested Citation
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Loomes, Graham & Sugden, Robert, 1982. "Regret Theory: An Alternative Theory of Rational Choice under Uncertainty," Economic Journal, Royal Economic Society, vol. 92(368), pages 805-824, December.
- J. Edward Russo & Margaret G. Meloy & T. Jeffrey Wilks, 2000. "Predecisional Distortion of Information by Auditors and Salespersons," Management Science, INFORMS, vol. 46(1), pages 13-27, January.
- Hsee, Christopher K., 1995. "Elastic Justification: How Tempting but Task-Irrelevant Factors Influence Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(3), pages 330-337, June.
- Camerer, Colin & Weber, Martin, 1992.
"Recent Developments in Modeling Preferences: Uncertainty and Ambiguity,"
Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 325-370, October.
- Camerer, Colin F. & Weber, Martin, 1991. "Recent developments in modelling preferences: Uncertainty and ambiguitiy," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 275, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
- Edward J. Russo & Kurt A. Carlson & Margaret G. Meloy & Kevyn Yong, 2008. "The goal of consistency as a cause of information distortion," Post-Print hal-00481326, HAL.
- Hsee, Christopher K., 1996. "Elastic Justification: How Unjustifiable Factors Influence Judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 66(1), pages 122-129, April.
- Bond, Samuel D. & Carlson, Kurt A. & Meloy, Margaret G. & Russo, J. Edward & Tanner, Robin J., 2007. "Information distortion in the evaluation of a single option," Organizational Behavior and Human Decision Processes, Elsevier, vol. 102(2), pages 240-254, March.
- David E. Bell, 1985. "Disappointment in Decision Making Under Uncertainty," Operations Research, INFORMS, vol. 33(1), pages 1-27, February.
- Schweitzer, Maurice E & Hsee, Christopher K, 2002. "Stretching the Truth: Elastic Justification and Motivated Communication of Uncertain Information," Journal of Risk and Uncertainty, Springer, vol. 25(2), pages 185-201, September.
- Craig R. Fox & Amos Tversky, 1995. "Ambiguity Aversion and Comparative Ignorance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 585-603.
- Thomas S. Wallsten, 1981. "Physician and Medical Student Bias in Evaluating Diagnostic Information," Medical Decision Making, , vol. 1(2), pages 145-164, June.
- Kuhn, Kristine M., 1997. "Communicating Uncertainty: Framing Effects on Responses to Vague Probabilities," Organizational Behavior and Human Decision Processes, Elsevier, vol. 71(1), pages 55-83, July.
- Ho, Joanna L Y & Keller, L Robin & Keltyka, Pamela, 2002. "Effects of Outcome and Probabilistic Ambiguity on Managerial Choices," Journal of Risk and Uncertainty, Springer, vol. 24(1), pages 47-74, January.
- Russo, J. Edward & Medvec, Victoria Husted & Meloy, Margaret G., 1996. "The Distortion of Information during Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 66(1), pages 102-110, April.
- David E. Bell, 1982. "Regret in Decision Making under Uncertainty," Operations Research, INFORMS, vol. 30(5), pages 961-981, October.
- Kurt A. Carlson & Margaret G. Meloy & J. Edward Russo, 2006. "Leader-Driven Primacy: Using Attribute Order to Affect Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 32(4), pages 513-518, March.
- Andrea Gurmankin Levy & John C. Hershey, 2008. "Value-Induced Bias in Medical Decision Making," Medical Decision Making, , vol. 28(2), pages 269-276, March.
- Curley, Shawn P. & Yates, J. Frank, 1985. "The center and range of the probability interval as factors affecting ambiguity preferences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(2), pages 273-287, October.
- Gurmankin Levy, Andrea & Hershey, John C., 2006. "Distorting the probability of treatment success to justify treatment decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(1), pages 52-58, September.
- Graham Loomes & Robert Sugden, 1986. "Disappointment and Dynamic Consistency in Choice under Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(2), pages 271-282.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- DeKay, Michael L. & Miller, Seth A. & Schley, Dan R. & Erford, Breann M., 2014. "Proleader and antitrailer information distortion and their effects on choice and postchoice memory," Organizational Behavior and Human Decision Processes, Elsevier, vol. 125(2), pages 134-150.
- Andreas Glöckner & Christoph Engel, 2013. "Can We Trust Intuitive Jurors? Standards of Proof and the Probative Value of Evidence in Coherence‐Based Reasoning," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 10(2), pages 230-252, June.
- Martine Nurek & Olga Kostopoulou & York Hagmayer, 2014. "Predecisional information distortion in physicians' diagnostic judgments: Strengthening a leading hypothesis or weakening its competitor?," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(6), pages 572-585, November.
- Andreas Glockner & Arndt Broder, 2014. "Cognitive integration of recognition information and additional cues in memory-based decisions," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(1), pages 35-50, January.
- Russo, J.E. & Yong, Kevyn, 2011. "The distortion of information to support an emerging evaluation of risk," Journal of Econometrics, Elsevier, vol. 162(1), pages 132-139, May.
- Windschitl, Paul D. & Scherer, Aaron M. & Smith, Andrew R. & Rose, Jason P., 2013. "Why so confident? The influence of outcome desirability on selective exposure and likelihood judgment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 120(1), pages 73-86.
- Bonaccorsi, Andrea & Apreda, Riccardo & Fantoni, Gualtiero, 2020. "Expert biases in technology foresight. Why they are a problem and how to mitigate them," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
- repec:cup:judgdm:v:8:y:2013:i:5:p:561-576 is not listed on IDEAS
- repec:cup:judgdm:v:9:y:2014:i:6:p:572-585 is not listed on IDEAS
- Carlson, Kurt A. & Guha, Abhijit, 2011. "Leader-focused search: The impact of an emerging preference on information search," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(1), pages 133-141, May.
- Andreas Glockner & Tilmann Betsch, 2011. "The Empirical content of theories in judgment and decision making: Shortcomings and remedies," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(8), pages 711-721, December.
- repec:cup:judgdm:v:6:y:2011:i:8:p:711-721 is not listed on IDEAS
- Aejoo Lee & Ki-Joon Back & JungKun Park, 2017. "Effects of customer personal characteristics on the satisfaction-loyalty link: a multi-method approach," Service Business, Springer;Pan-Pacific Business Association, vol. 11(2), pages 279-297, June.
- Anne-Sophie Chaxel & J. Edward Russo & Neda Kerimi, 2013. "Preference-driven biases in decision makers' information search and evaluation," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(5), pages 561-576, September.
- repec:cup:judgdm:v:9:y:2014:i:1:p:35-50 is not listed on IDEAS
- Mitchell J. Small & Ümit Güvenç & Michael L. DeKay, 2014. "When Can Scientific Studies Promote Consensus Among Conflicting Stakeholders?," Risk Analysis, John Wiley & Sons, vol. 34(11), pages 1978-1994, November.
- Winkler, Jens & Moser, Roger, 2016. "Biases in future-oriented Delphi studies: A cognitive perspective," Technological Forecasting and Social Change, Elsevier, vol. 105(C), pages 63-76.
- Mischkowski, Dorothee & Glöckner, Andreas & Lewisch, Peter, 2021. "Information search, coherence effects, and their interplay in legal decision making," Journal of Economic Psychology, Elsevier, vol. 87(C).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- repec:cup:judgdm:v:8:y:2013:i:6:p:662-677 is not listed on IDEAS
- Seth A. Miller & Michael L. DeKay & Eric R. Stone & Clare M. Sorenson, 2013. "Assessing the sensitivity of information distortion to four potential influences in studies of risky choice," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(6), pages 662-677, November.
- repec:cup:judgdm:v:9:y:2014:i:6:p:572-585 is not listed on IDEAS
- Lisheng He & Pantelis P. Analytis & Sudeep Bhatia, 2022. "The Wisdom of Model Crowds," Management Science, INFORMS, vol. 68(5), pages 3635-3659, May.
- Mischkowski, Dorothee & Glöckner, Andreas & Lewisch, Peter, 2021. "Information search, coherence effects, and their interplay in legal decision making," Journal of Economic Psychology, Elsevier, vol. 87(C).
- Joanna Ho & L. Keller & Pamela Keltyka, 2005. "How Do Information Ambiguity and Timing of Contextual Information Affect Managers’ Goal Congruence in Making Investment Decisions in Good Times vs. Bad Times?," Journal of Risk and Uncertainty, Springer, vol. 31(2), pages 163-186, September.
- DeKay, Michael L. & Miller, Seth A. & Schley, Dan R. & Erford, Breann M., 2014. "Proleader and antitrailer information distortion and their effects on choice and postchoice memory," Organizational Behavior and Human Decision Processes, Elsevier, vol. 125(2), pages 134-150.
- Gierl, Heribert & Stiegelmayr, Karin, 2012. "Erzeugt nicht-diagnostische Information einen Reihenfolge-Effekt im Fall der attributweisen Informationspräsentation?," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 66(2), pages 127-152.
- Martine Nurek & Olga Kostopoulou & York Hagmayer, 2014. "Predecisional information distortion in physicians' diagnostic judgments: Strengthening a leading hypothesis or weakening its competitor?," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 9(6), pages 572-585, November.
- van Dijk, Wilco W. & van der Pligt, Joop, 1997. "The Impact of Probability and Magnitude of Outcome on Disappointment and Elation," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(3), pages 277-284, March.
- Enrico G. De Giorgi & Thierry Post, 2011.
"Loss Aversion with a State-Dependent Reference Point,"
Management Science, INFORMS, vol. 57(6), pages 1094-1110, June.
- Enrico G. De Giorgi & Thierry Post, 2010. "Loss aversion with a state-dependent reference point," University of St. Gallen Department of Economics working paper series 2010 2010-23, Department of Economics, University of St. Gallen.
- Patricia H. Born & E. Tice Sirmans, 2019. "Regret in health insurance post‐purchase behavior," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 22(2), pages 207-219, July.
- Servaas van Bilsen & Roger J. A. Laeven & Theo E. Nijman, 2020. "Consumption and Portfolio Choice Under Loss Aversion and Endogenous Updating of the Reference Level," Management Science, INFORMS, vol. 66(9), pages 3927-3955, September.
- Corina Birghila & Tim J. Boonen & Mario Ghossoub, 2023. "Optimal insurance under maxmin expected utility," Finance and Stochastics, Springer, vol. 27(2), pages 467-501, April.
- Battigalli, Pierpaolo & Dufwenberg, Martin, 2009.
"Dynamic psychological games,"
Journal of Economic Theory, Elsevier, vol. 144(1), pages 1-35, January.
- Pierpaolo Battigalli & Martin Dufwenberg, 2005. "Dynamic Psychological Games," Working Papers 287, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Pierpaolo Battigalli & Martin Dufwenberg, 2005. "Dynamic Psychological Games," Levine's Bibliography 784828000000000046, UCLA Department of Economics.
- Jean Desrochers & J. Francois Outreville, 2013. "Uncertainty, Ambiguity and Risk Taking: an experimental investigation of consumer behavior and demand for insurance," ICER Working Papers 10-2013, ICER - International Centre for Economic Research.
- Christian Knoller, 2016. "MULTIPLE REFERENCE POINTS AND THE DEMAND FOR PRINCIPAL-PROTECTED LIFE ANNUITIES: An EXPERIMENTAL ANALYSIS," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(1), pages 163-179, January.
- Graham Loomes & Ganna Pogrebna, 2014. "Testing for independence while allowing for probabilistic choice," Journal of Risk and Uncertainty, Springer, vol. 49(3), pages 189-211, December.
- Marc Willinger, 1990. "La rénovation des fondements de l'utilité et du risque," Revue Économique, Programme National Persée, vol. 41(1), pages 5-48.
- Xi Zhi Lim, 2021. "Ordered Reference Dependent Choice," Papers 2105.12915, arXiv.org, revised Feb 2024.
- Carlos Laciana & Elke Weber, 2008. "Correcting expected utility for comparisons between alternative outcomes: A unified parameterization of regret and disappointment," Journal of Risk and Uncertainty, Springer, vol. 36(1), pages 1-17, February.
- van Winden, Frans & Krawczyk, Michal & Hopfensitz, Astrid, 2011.
"Investment, resolution of risk, and the role of affect,"
Journal of Economic Psychology, Elsevier, vol. 32(6), pages 918-939.
- Frans van Winden & Michal Krawczyk & Astrid Hopfensitz, 2008. "Investment, Resolution of Risk, and the Role of Affect," Tinbergen Institute Discussion Papers 08-047/1, Tinbergen Institute.
- Frans Van Winden & Michal Krawczyk & Astrid Hopfensitz, 2010. "Investment, Resolution of Risk, and the Role of Affect," CESifo Working Paper Series 2975, CESifo.
- Hopfensitz, Astrid & Krawczyk, Michal & Van Winden, Frans, 2009. "Investment, Resolution of Risk, and the Role of Affect," TSE Working Papers 09-123, Toulouse School of Economics (TSE).
- van Winden, Frans A.A.M. & Hopfensitz, Astrid & Krawczyk, Michal, 2008. "Investment, Resolution of Risk, and the Role of Affect," CEPR Discussion Papers 6822, C.E.P.R. Discussion Papers.
More about this item
Keywords
Information distortion Bidirectional reasoning Implied dominance Decision analysis Expected utility theory Consequentialism Ambiguity Multilevel modeling;Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jobhdp:v:109:y:2009:i:1:p:79-92. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/obhdp .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.