The bounded rationality of probability distortion

DOI10.1073/PNAS.1922401117zbMATH Open1485.91073OpenAlexW3080693968WikidataQ98725441 ScholiaQ98725441MaRDI QIDQ5073154FDOQ5073154

Authors: Hang Zhang, Xiangjuan Ren, Laurence T. Maloney 

Publication date: 5 May 2022

Published in: Proceedings of the National Academy of Sciences (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1073/pnas.1922401117

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Mathematics Subject Classification ID

Applications of statistics to psychology (62P15) Decision theory (91B06) Bayesian problems; characterization of Bayes procedures (62C10)

Cites Work

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• Three new tests of independence that differentiate models of risky decision making
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• Normalization is a general neural mechanism for context-dependent decision making

Cited In (6)

• Monetary policy rules in a non-rational world: a macroeconomic experiment
• A Welfare Criterion For Models With Distorted Beliefs*
• Distorted probabilities and choice under risk
• Underestimation of probabilities modifications: characterization and economic implications
• The bounded rationality of probability distortion
• Inference from Streaks in Random Outcomes: Experimental Evidence on Beliefs in Regime Shifting and the Law of Small Numbers

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