TY - JOUR
AU - Kirsner, Britt
AB - Three reasons for why people may evaluate utility in a rank-dependent fashion have been suggested: (a) rank-dependent weighting is a function of perceptual biases and thus not prescriptively defensible; (b) weights are (re)distributed by motivational processes that reflect stable personality characteristics of the decision maker; and (c) weights are (re)distributed as a function of the situation, allowing rank-dependent evaluation to be a rational response to an environment with asymmetric loss functions. By modifying a study by Wakker, Erev, and Weber (1994) we show that all three processes—that is, perceptual biases, individual predispositions in weighting, as well as rational adaptation to an asymmetric loss function—can be involved in rank-dependent weighting.
TI - Reasons for Rank-Dependent Utility Evaluation
JF - Journal of Risk and Uncertainty
DO - 10.1023/A:1007769703493
DA - 2004-09-29
UR - https://www.deepdyve.com/lp/springer-journals/reasons-for-rank-dependent-utility-evaluation-3Xn801TAKD
SP - 41
EP - 61
VL - 14
IS - 1
DP - DeepDyve
ER -