Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 7-Day Trial for You or Your Team.

Learn More →

Reversals of preference between bids and choices in gambling decisions

Reversals of preference between bids and choices in gambling decisions Conducted 3 experiments in which undergraduate males (N = 261) chose their preferred bet from pairs of bets and later bid for each bet separately. In each pair, 1 bet had a higher probability of winning (P bet); the other offered more to win ($ bet). Bidding method (selling vs. buying) and payoff method (real-play vs. hourly wage) were varied. Results show that when the P bet was chosen, the $ bet often received a higher bid. It is concluded that these inconsistencies violate every risky decision model, but can be understood via information-processing considerations. In bidding, S starts with amount to win and adjusts it downward to account for other attributes of the bet. In choosing, there is no natural starting point: amount to win dominates bids but not choices. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Experimental Psychology General American Psychological Association

Reversals of preference between bids and choices in gambling decisions

Download PDF
10 pages

Loading next page...
 
/lp/american-psychological-association/reversals-of-preference-between-bids-and-choices-in-gambling-decisions-44typWj5aI

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
American Psychological Association
Copyright
Copyright © 1971 American Psychological Association
ISSN
0096-3445
eISSN
1939-2222
DOI
10.1037/h0031207
Publisher site
See Article on Publisher Site

Abstract

Conducted 3 experiments in which undergraduate males (N = 261) chose their preferred bet from pairs of bets and later bid for each bet separately. In each pair, 1 bet had a higher probability of winning (P bet); the other offered more to win ($ bet). Bidding method (selling vs. buying) and payoff method (real-play vs. hourly wage) were varied. Results show that when the P bet was chosen, the $ bet often received a higher bid. It is concluded that these inconsistencies violate every risky decision model, but can be understood via information-processing considerations. In bidding, S starts with amount to win and adjusts it downward to account for other attributes of the bet. In choosing, there is no natural starting point: amount to win dominates bids but not choices.

Journal

Journal of Experimental Psychology General – American Psychological Association

Published: Jul 1, 1971

There are no references for this article.