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Formulating an emergency plan based on expectation-maximization is one thing, but applying it to a single case is another

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  • Hong-Yue Sun
  • Li-Lin Rao
  • Kun Zhou
  • Shu Li

Abstract

This research extends the exploration of single-play/multiple-play distinctions from monetary gambling paradigm to emergency management situation. We conducted three studies (two survey studies and one eye tracking study) to test whether an emergency plan we formulated in advance based on expectation-maximization would be likely to be applied in a single case. In the first two survey studies we found that the plan with the higher EV was more likely to be preferred when the plan was applied 100 times or to 100 areas than when the plan was applied only once or to only one area. We also found significant framing and reflection effects, both of which violated the invariance principle in the single-application condition, but not in the multiple-application condition. Furthermore, in the eye tracking study, we found distinctly different eye movement patterns in the single-application condition and the multiple-application condition. The eye movement patterns in the multiple-application condition are more consistent with the predictions deduced from expectation computation. The overall results suggest that a gap exists between the formulation and the implementation of an emergency plan. Formulating an emergency plan based on expectation-maximization is doable, but applying it to a single case may be more challenging.

Suggested Citation

  • Hong-Yue Sun & Li-Lin Rao & Kun Zhou & Shu Li, 2014. "Formulating an emergency plan based on expectation-maximization is one thing, but applying it to a single case is another," Journal of Risk Research, Taylor & Francis Journals, vol. 17(7), pages 785-814, August.
  • Handle: RePEc:taf:jriskr:v:17:y:2014:i:7:p:785-814
    DOI: 10.1080/13669877.2013.816333
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    Cited by:

    1. José Antonio Robles-Zurita & José Luis Pinto-Prades, 2015. "Randomness beliefs and decisions on risky medical treatments," Working Papers 15.16, Universidad Pablo de Olavide, Department of Economics.

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