Modeling the impact of control on the attractiveness of risk in a prospect theory framework
Bibliographic Data
| ID | 12166273 |
|---|---|
| Authors | Diana L Young (corresponding author), Adam S Goodie (University of Georgia), Daniel B Hall (0000-0003-3089-9574, University of Georgia) |
| Year | 2009 |
| Volume | 24 |
| Issue | 1 |
| Pages | 47-70 |
| Publication date | 2009-11-13 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Behavioral Decision Making (JOURNAL) |
| Journal identifiers | ISSN: 0894-3257 • E-ISSN: 1099-0771 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/bdm.682 |
| PMID | 21278906 |
| PMCID | PMC3026343 |
| OpenAlex | W2086503465 |
| Language | EN |
| Citations received | 1 |
| References cited | 44 |
Many decisions involve a degree of personal control over event outcomes, which is exerted through one's knowledge or skill. In three experiments we investigated differences in decision making between prospects based on a) the outcome of random events and b) the outcome of events characterized by control. In Experiment 1, participants estimated certainty equivalents (CEs) for bets based on either random events or the correctness of their answers to U.S. state population questions across the probability spectrum. In Experiment 2, participants estimated CEs for bets based on random events, answers to U.S. state population questions, or answers to questions about 2007 NCAA football game results. Experiment 3 extended the same procedure as Experiment 1 using a within-subjects design. We modeled data from all experiments in a prospect theory framework to establish psychological mechanisms underlying decision behavior. Participants weighted the probabilities associated with bets characterized by control so as to reflect greater risk attractiveness relative to bets based on random events, as evidenced by more elevated weighting functions under conditions of control. This research elucidates possible cognitive mechanisms behind increased risk taking for decisions characterized by control, and implications for various literatures are discussed
Actuarial science · Attractiveness · Certainty · Cognitive psychology · Control (management · Cumulative prospect theory · Econometrics · Economics · Event (particle physics · Illusion of control · Microeconomics · Outcome (game theory · Population · Prospect theory · Weighting · Behavioral Health and Interventions · Computer Science · Decision-Making and Behavioral Economics · Demography · Experimental Behavioral Economics Studies · Mathematics · Medicine · Psychology · Social Psychology · Artificial Intelligence
Mixed-Effects Models in Sand S-PLUS
On the Shape of the Probability Weighting Function
The Probability Weighting Function
Experimental practices in economics
Preference and belief
Weighing risk and uncertainty.
Exposition of a New Theory on the Measurement of Risk
Representativeness Revisited
Developments in Non-Expected Utility Theory
Advances in prospect theory
Loss Aversion in Riskless Choice
Generalized expectancies for internal versus external control of reinforcement.
Prospect Theory
Self-efficacy
Engaging in 'Illusory Control' During Repeated Risk-Taking
Engaging in “Illusory Control” during Repeated Risk-Taking
Beyond the Gambling Paradigm
Beyond the Gambling Paradigm
Narcissism, confidence, and risk attitude
Effects of Perceived Control upon Wagering and Attributions in Computer Blackjack
Unrealistic optimism about future life events
The illusion of control
Illusion and well-being
Positive illusions and well-being revisited
Will it hurt less if I can control it? A complex answer to a simple question
Do positive illusions foster mental health? An examination of the Taylor and Brown formulation
| Citations per year | 0.33 |
|---|---|
| Citation span | 2023 - 2023 (1) |
| Highly cited | No |