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dc.contributor.authorBarreda-Tarrazona, Iván
dc.contributor.authorJaramillo Gutiérrez, Ainhoa
dc.contributor.authorNavarro Martínez, Daniel
dc.contributor.authorSabater Grande, Gerardo
dc.date.accessioned2015-07-15T09:30:18Z
dc.date.available2015-07-15T09:30:18Z
dc.date.issued2014-10
dc.identifier.citationBARREDA-TARRAZONA, Ivan, et al. The role of forgone opportunities in decision making under risk. Journal of Risk and Uncertainty, 2014, 49.2: 167-188.ca_CA
dc.identifier.urihttp://hdl.handle.net/10234/127655
dc.description.abstractWe present two experiments designed to study the role of forgone opportunities in decision making under risk. In the first one, we face individuals with a dynamic environment in which their decisions, together with chance, determine their future options. We find that previously faced opportunities influence subsequent choices in predictable ways. Having faced worse options in the past significantly increases individuals’ risk aversion and having faced better options reduces it. These patterns are at odds with most existing decision theories, including Expected Utility Theory and standard implementations of Prospect Theory, the dominant models of economic decision making. In our second experiment, we present participants with a similar decision environment, but in which the opportunities they face do not depend on their past choices. The effect of previously faced options on decision behavior in this environment is considerably reduced. This shows that being responsible for forgoing opportunities is an important factor in their influence on behavior, which underscores the relevance of emotions linked to counterfactual thinking, like regret or satisfaction. These results highlight that theories formulated in cognitive terms are not enough to provide an adequate account of the role of forgone opportunities in decision making under risk and uncertainty.ca_CA
dc.format.extent19 p.ca_CA
dc.format.mimetypeapplication/pdfca_CA
dc.language.isoengca_CA
dc.publisherSpringer Verlagca_CA
dc.relation.isPartOfJournal of Risk and Uncertainty October 2014, Volume 49, Issue 2ca_CA
dc.subjectdecision making under riskca_CA
dc.subjectpath-dependenceca_CA
dc.subjectreference-dependenceca_CA
dc.subjectcounterfactual thinkingca_CA
dc.subjectemotionsca_CA
dc.titleThe role of forgone opportunities in decision making under riskca_CA
dc.typeinfo:eu-repo/semantics/articleca_CA
dc.identifier.doihttp://dx.doi.org/10.1007/s11166-014-9201-4
dc.rights.accessRightsinfo:eu-repo/semantics/openAccessca_CA
dc.relation.publisherVersionhttp://link.springer.com/article/10.1007/s11166-014-9201-4ca_CA


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