IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03819328.html
   My bibliography  Save this paper

Is Probability Weighting Sensitive to the Magnitude of Consequences? An Experimental Investigation on Losses

Author

Listed:
  • Nathalie Etchart-Vincent

    (GRID - Groupe de Recherche sur le risque, l'Information et la Décision - ENS Cachan - École normale supérieure - Cachan - CNRS - Centre National de la Recherche Scientifique)

Abstract

Experimental investigations of the probability weighting function over losses are scarce and all involve small payoffs. The paper aims to give new insight into the probability weighting function for losses, by eliciting it through a simple two-stage semi-parametric procedure over more realistic losses, and by investigating its sensitivity to the magnitude of the payoffs. Current data confirm previous evidence of convex utility functions and inverse-S-shaped weighting functions. Still, at least for small probabilities, probability weighting appears to be affected by the size of consequences: the larger the losses, the more aversive the gambles and the more pessimistic the subjects are.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Nathalie Etchart-Vincent, 2004. "Is Probability Weighting Sensitive to the Magnitude of Consequences? An Experimental Investigation on Losses," Post-Print hal-03819328, HAL.
    • Handle: RePEc:hal:journl:hal-03819328
    DOI: 10.1023/B:RISK.0000026096.48985.a3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:hal:journl:hal-03819328. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.