Thu, 24 Jul 2008 23:23:28 BST CiteULike: Tag aversion http://www.citeulike.org/tag/aversion CiteULike.org en-gb Copyright © 2004-2008 citeulike.org http://www.citeulike.org/user/plm/article/2393519 <i>J Math Psychol, Vol. 45, No. 2. (April 2001), pp. 265-282.</i><br /><br />This paper provides a new and more robust test of the descriptive validity of the constant rate discounted utility model in medical decision analysis. The constant rate discounted utility model is compared with two competing theories, Harvey's (1986) proportional discounting model and Loewenstein and Prelec's (1992) hyperbolic discounting model. To compare the various intertemporal models, previous studies on intertemporal preferences for health assumed a specific parametric form of the utility function for life-years and no discounting within the time periods that health states are experienced. The present study avoids such confounding assumptions by focusing on the axiomatic structure of the discounting models. The present study further differs by using choices instead of matching to elicit intertemporal preferences. The experimental results provide support for decreasing timing aversion, the condition underlying the proportional and the hyperbolic discounting model, but they violate stationarity, the central condition of the constant rate discounted utility model. There is some ambiguity whether the violations of stationarity are primarily caused by an immediacy effect. The results confirm violations of stationarity in choice-based elicitations tasks, in contrast with the results from Ahlbrecht and Weber (1997) which supported stationarity in choices over monetary outcomes. Copyright 2001 Academic Press. Time Preference for Health: A Test of Stationarity versus Decreasing Timing Aversion. Han Bleichrodt Magnus Johannesson doi:10.1006/jmps.2000.1312 J Math Psychol, Vol. 45, No. 2. (April 2001), pp. 265-282. 2008-02-18T11:33:40-00:00 2001 J Math Psychol 0022-2496 45 2 265 282 aversion health risk time utility http://www.citeulike.org/user/plm/article/1674317 <i>Journal of Risk and Uncertainty, Vol. 35, No. 1. (August 2007), pp. 67-76.</i> Risk aversion and expected-utility theory: A calibration exercise Schechter Laura doi:10.1007/s11166-007-9017-6 Journal of Risk and Uncertainty, Vol. 35, No. 1. (August 2007), pp. 67-76. 2007-09-19T06:49:42-00:00 2007 Journal of Risk and Uncertainty 0895-5646 35 1 67 76 Springer aversion risk http://www.citeulike.org/user/plm/article/314368 <i>Journal of Risk and Uncertainty, Vol. 31, No. 1. (July 2005), pp. 23-34.</i> The Value of a Statistical Life and the Coefficient of Relative Risk Aversion Louis Kaplow doi:10.1007/s11166-005-2928-1 Journal of Risk and Uncertainty, Vol. 31, No. 1. (July 2005), pp. 23-34. 2005-09-09T13:02:38-00:00 2005 Journal of Risk and Uncertainty 0895-5646 31 1 23 34 Kluwer Academic Publishers aversion risk http://www.citeulike.org/user/plm/article/167252 <i>Journal of Risk and Uncertainty, Vol. 30, No. 2. (March 2005), pp. 157-167.</i> What is Loss Aversion? Ulrich Schmidt Horst Zank doi:10.1007/s11166-005-6564-6 Journal of Risk and Uncertainty, Vol. 30, No. 2. (March 2005), pp. 157-167. 2005-04-22T09:56:15-00:00 2005 Journal of Risk and Uncertainty 0895-5646 30 2 157 167 Kluwer Academic Publishers aversion loss risk http://www.citeulike.org/user/plm/article/87216 <i>Journal of Economic Literature, Vol. 36, No. 1. (1998), pp. 11-46.</i> Psychology and Economics Matthew Rabin doi:10.2307/2564950 Journal of Economic Literature, Vol. 36, No. 1. (1998), pp. 11-46. 2005-02-05T04:24:20-00:00 1998 Journal of Economic Literature 36 1 11 46 ambiguity aversion risk http://www.citeulike.org/user/plm/article/819639 <i>The Journal of Political Economy, Vol. 108, No. 3. (2000), pp. 503-530.</i><br /><br />In this paper we investigate the attitudes toward risk of bettors in British horse races. The model we use allows us to go beyond the expected utility framework and to explore various alternative proposals by estimating a multinomial model on a 34,443-race data set. We find that rank-dependent utility models do not fit the data noticeably better than expected utility models. On the other hand, cumulative prospect theory has higher explanatory power. Our preferred estimates suggest a pattern of local risk aversion similar to that proposed by Friedman and Savage. Estimating Preferences Under Risk: The Case of Racetrack Bettors Bruno Jullien Bernard Salanie doi:10.2307/3038268 The Journal of Political Economy, Vol. 108, No. 3. (2000), pp. 503-530. 2006-08-28T09:24:54-00:00 2000 The Journal of Political Economy 108 3 503 530 aversion econometrics risk http://www.citeulike.org/user/plm/article/2484750 <i>Transportation Research Part E: Logistics and Transportation Review, Vol. 37, No. 2-3. ( 2001), pp. 231-251.</i> The value of time and reliability: measurement from a value pricing experiment Terence Lam Kenneth Small doi:10.1016/S1366-5545(00)00016-8 Transportation Research Part E: Logistics and Transportation Review, Vol. 37, No. 2-3. ( 2001), pp. 231-251. 2008-03-07T14:43:21-00:00 2001 Transportation Research Part E: Logistics and Transportation Review 37 2-3 231 251 aversion choice discrete expected risk utility http://www.citeulike.org/user/plm/article/812616 <i>The American Economic Review, Vol. 92, No. 5. (2002), pp. 1644-1655.</i> Risk Aversion and Incentive Effects Charles Holt Susan Laury The American Economic Review, Vol. 92, No. 5. (2002), pp. 1644-1655. 2006-08-22T12:19:17-00:00 2002 The American Economic Review 92 5 1644 1655 aversion risk http://www.citeulike.org/user/plm/article/2673750 <i>Economics Letters, Vol. 71, No. 2. (May 2001), pp. 241-245.</i><br /><br />In this paper we develop for two particular utility functions a technique that generalizes the fundamental work of Pratt on a [`]more risk averse' function to the nth order of absolute risk aversion. Monotone transformation of utility: Some particular cases Philippe Godfroid doi:10.1016/S0165-1765(01)00378-0 Economics Letters, Vol. 71, No. 2. (May 2001), pp. 241-245. 2008-04-15T15:26:30-00:00 2001 Economics Letters 71 2 241 245 aversion exponential logarithm risk transformation utility http://www.citeulike.org/user/plm/article/1229689 <i>The Australian Journal of Agricultural and Resource Economics, Vol. 48, No. 2. (2004), pp. 253-270.</i><br /><br />A method of stochastic dominance analysis with respect to a function (SDRF) is described and illustrated. The method, called stochastic efficiency with respect to a function (SERF), orders a set of risky alternatives in terms of certainty equivalents for a specified range of attitudes to risk. It can be applied for conforming utility functions with risk attitudes defined by corresponding ranges of absolute, relative or partial risk aversion coefficients. Unlike conventional SDRF, SERF involves comparing each alternative with all the other alternatives simultaneously, not pairwise, and hence can produce a smaller efficient set than that found by simple pairwise SDRF over the same range of risk attitudes. Moreover, the method can be implemented in a simple spreadsheet with no special software needed. Stochastic efficiency analysis with risk aversion bounds: a simplified approach Hardaker James Richardson Gudbrand Lien Keith Schumann doi:10.1111/j.1467-8489.2004.00239.x The Australian Journal of Agricultural and Resource Economics, Vol. 48, No. 2. (2004), pp. 253-270. 2007-04-16T11:48:53-00:00 2004 The Australian Journal of Agricultural and Resource Economics 48 2 253 270 aversion bounds risk http://www.citeulike.org/user/plm/article/1031798 <i>The American Economic Review, Vol. 96, No. 5. (December 2006), pp. 1821-1834.</i><br /><br />I show existing evidence on labor supply behavior places an upper bound on risk aversion in the expected utility model. I derive a formula for the coefficient of relative risk aversion (γ) in terms of the ratio of the income elasticity of labor supply to wage elasticity and degree of complementarity between consumption and labor. I bound the degree of complementarity using data on consumption choices when labor supply varies across states. Using labor supply elasticity estimates, I find a mean example of γ ≈ 1, then show generating γ > 2 requires that wage increases cause sharper labor supply reductions. A New Method of Estimating Risk Aversion Raj Chetty doi:10.1257/000282806779396102 The American Economic Review, Vol. 96, No. 5. (December 2006), pp. 1821-1834. 2007-01-09T17:41:52-00:00 2006 The American Economic Review 0002-8282 96 5 1821 1834 American Economic Association aversion risk http://www.citeulike.org/user/plm/article/804270 <i>The Review of Economics and Statistics, Vol. 56, No. 2. (1974), pp. 209-214.</i> Risk Aversion and the Consumer Choice of Health Insurance Option Bernard Friedman The Review of Economics and Statistics, Vol. 56, No. 2. (1974), pp. 209-214. 2006-08-17T15:10:34-00:00 1974 The Review of Economics and Statistics 56 2 209 214 aversion health insurance risk http://www.citeulike.org/user/plm/article/2745529 <i>American Journal of Agricultural Economics, Vol. 86, No. 4. (2004), pp. 869-888.</i><br /><br />We introduce a method for properly attributing observed productivity and risk changes among new production methods, farmers, and plots by controlling for farmer and plot heterogeneity. Results from Madagascar show that the new system of rice intensification (SRI) is indeed a superior technology. Although about half of the observed productivity gains appear due to farmer characteristics rather than SRI itself, the technology generates the estimated average output gains of more than 84%. The increased estimated yield risk associated with SRI would nonetheless make it unattractive to many farmers within the standard range of relative risk aversion. Better Technology, Better Plots, or Better Farmers? Identifying Changes in Productivity and Risk among Malagasy Rice Farmers Christopher Barrett Christine Moser Oloro Mchugh Joeli Barison doi:10.1111/j.0002-9092.2004.00640.x American Journal of Agricultural Economics, Vol. 86, No. 4. (2004), pp. 869-888. 2008-05-02T12:09:32-00:00 2004 American Journal of Agricultural Economics 86 4 869 888 aversion risk http://www.citeulike.org/user/Oliver/article/278435 <i>The Journal of Finance, Vol. 56, No. 4. (2001), pp. 1247-1292.</i><br /><br />We study equilibrium firm-level stock returns in two economies: one in which investors are loss averse over the fluctuations of their stock portfolio, and another in which they are loss averse over the fluctuations of individual stocks that they own. Both approaches can shed light on empirical phenomena, but we find the second approach to be more successful: In that economy, the typical individual stock return has a high mean and excess volatility, and there is a large value premium in the cross section which can, to some extent, be captured by a commonly used multifactor model. Mental Accounting, Loss Aversion, and Individual Stock Returns Nicholas Barberis Ming Huang The Journal of Finance, Vol. 56, No. 4. (2001), pp. 1247-1292. 2005-08-11T07:48:45-00:00 2001 The Journal of Finance 56 4 1247 1292 accounting aversion loss mentall http://www.citeulike.org/user/oamg/article/1123366 <i>Neuron, Vol. 51, No. 6. (21 September 2006), pp. 861-870.</i><br /><br />Summary Both appetitive and aversive outcomes can reinforce animal behavior. It is not clear, however, whether the opposing kinds of reinforcers are processed by specific or common neural mechanisms. To investigate this issue, we studied macaque monkeys that performed a memory-guided saccade task for three different outcomes, namely delivery of liquid reward, avoidance of air puff, and feedback sound only. Animals performed the task best in rewarded trials, intermediately in aversive trials, and worst in sound-only trials. Most task-related activity in lateral prefrontal cortex was differentially influenced by the reinforcers. Aversive avoidance had clear effects on some prefrontal neurons, although the effects of rewards were more common. We also observed neurons modulated by both positive and negative reinforcers, reflecting reinforcement or attentional processes. Our results demonstrate that information about positive and negative reinforcers is processed differentially in prefrontal cortex, which could contribute to the role of this structure in goal-directed behavior. Influences of Rewarding and Aversive Outcomes on Activity in Macaque Lateral Prefrontal Cortex Shunsuke Kobayashi Kensaku Nomoto Masataka Watanabe Okihide Hikosaka Wolfram Schultz Masamichi Sakagami doi:10.1016/j.neuron.2006.08.031 Neuron, Vol. 51, No. 6. (21 September 2006), pp. 861-870. 2007-02-26T20:53:55-00:00 2006 Neuron 51 6 861 870 aversion lateral_prefrontal_cortex macaque reward http://www.citeulike.org/user/oamg/article/1229904 <i>Med Hypotheses, Vol. 67, No. 2. (2006), pp. 283-286.</i><br /><br />Decision-making under uncertainty has been studied in psychiatry, economic psychology, and neuroeconomics. Psychiatric patients (e.g., drug addicts) often show low degrees of aversion to potential danger. Investigation into neuropsychological processing underlying decision under uncertainty is important for medical treatments of neuropsychiatric disorders. In economic decision theory, choices under uncertainty with and without known probabilities of outcomes have been discriminated. Regarding decision-making under uncertainty with known probabilities (risk), Kahnemann-Tversky's prospect theory revealed that people tend to avoid uncertainty in potential gains (i.e., risk-aversion in a gain-frame); on the contrary, prefer uncertainty in potential losses (i.e., risk-seeking in a loss-frame). Regarding choices between possible gains with known and unknown probabilities, Ellsberg demonstrated that, in a gain-frame, people tend to avoid uncertainty with unknown probabilities, more dramatically than uncertainty with known probabilities. This can be explained by risk/uncertainty aversion in the gain-frame, suggesting that uncertainty with known and unknown probabilities (i.e., risk and Knightian uncertainty, respectively) may possibly be processed by similar neuropsychological processing in the gain-frame. However, in spite of accumulating evidence in neuroimaging and neuroeconomic studies, it is still unknown whether probability and Knightian uncertainty in the loss-frame are mediated by similar neuropsychological processes as well. We propose that distinct neuropsychological processes may mediate potential losses with known and unknown probabilities, based on recent findings in neuroeconomics and our experiment. Importance of examining subjects' degree of Knightian uncertainty aversion for the prediction/treatment of drug addicts' risky behavior (e.g., needle-sharing) is also discussed. Distinct neuropsychological processes may mediate decision-making under uncertainty with known and unknown probability in gain and loss frames. K Inukai T Takahashi doi:10.1016/j.mehy.2006.02.014 Med Hypotheses, Vol. 67, No. 2. (2006), pp. 283-286. 2007-04-16T14:11:40-00:00 2006 Med Hypotheses 0306-9877 67 2 283 286 ambiguity aversion decision-making loss neuroeconomics http://www.citeulike.org/user/oamg/article/613295 <i>Medical Hypotheses, Vol. 67, No. 1. (2006), pp. 183-186.</i><br /><br />SummaryRisky decision-making (e.g. reward dependency) has been associated with substance abuse, psychopathy and pathological gambling; conversely, marked sensitivity to risk and uncertainty have been observed in anxiety disorder patients. In economic decision theory, probability and uncertainty have been dissociated. Frank Knight defined uncertainty as loss of information on the probability distribution of outcomes for choices (i.e., unpredictability), which is referred to as Knightian uncertainty (also as ambiguity). However, even when the probability distribution of outcomes is known, there are different degrees of predictability. In information theory, this type of degrees of uncertainty/unpredictability has been parametrized by introducing Shannon entropy. In the present paper, we show: (i) a mathematical framework combining Shannon entropy in information theory and Weber's law in psychophysics is capable of parametrizing subject's level of both aversion to probabilistic uncertainty (exaggerated in anxiety disorder patients) and reward dependency (enhanced in drug addicts and pathological gamblers), and (ii) this framework has an analogue in thermodynamics, therefore this can readily be utilized in studies in the nascent fields of neuroeconomics and econophysics as well. Future study directions for elucidating maladaptive personality characteristics in neuropsychiatric patients by using the present framework are discussed. A mathematical framework for probabilistic choice based on information theory and psychophysics Taiki Takahashi doi:10.1016/j.mehy.2005.12.045 Medical Hypotheses, Vol. 67, No. 1. (2006), pp. 183-186. 2006-05-04T14:59:14-00:00 2006 Medical Hypotheses 67 1 183 186 ambiguity aversion decision-making information_theory loss neuroeconomics http://www.citeulike.org/user/oamg/article/1075815 <i>Science, Vol. 315, No. 5811. (26 January 2007), pp. 515-518.</i><br /><br />People typically exhibit greater sensitivity to losses than to equivalent gains when making decisions. We investigated neural correlates of loss aversion while individuals decided whether to accept or reject gambles that offered a 50/50 chance of gaining or losing money. A broad set of areas (including midbrain dopaminergic regions and their targets) showed increasing activity as potential gains increased. Potential losses were represented by decreasing activity in several of these same gain-sensitive areas. Finally, individual differences in behavioral loss aversion were predicted by a measure of neural loss aversion in several regions, including the ventral striatum and prefrontal cortex. 10.1126/science.1134239 The Neural Basis of Loss Aversion in Decision-Making Under Risk Sabrina Tom Craig Fox Christopher Trepel Russell Poldrack doi:10.1126/science.1134239 Science, Vol. 315, No. 5811. (26 January 2007), pp. 515-518. 2007-01-30T10:47:34-00:00 2007 Science 315 5811 515 518 aversion decision-making fmri loss loss_aversion risk striatum http://www.citeulike.org/user/batallah/article/1475796 <i>Science, Vol. 317, No. 5836. (20 July 2007), pp. 384-386.</i><br /><br />Queen mandibular pheromone (QMP) has profound effects on dopamine signaling in the brain of young worker honey bees. As dopamine in insects has been strongly implicated in aversive learning, we examined QMP's impact on associative olfactory learning in bees. We found that QMP blocks aversive learning in young workers, but leaves appetitive learning intact. We postulate that QMP's effects on aversive learning enhance the likelihood that young workers remain in close contact with their queen by preventing them from forming an aversion to their mother's pheromone bouquet. The results provide an interesting twist to a story of success and survival. 10.1126/science.1142448 Queen Pheromone Blocks Aversive Learning in Young Worker Bees Vanina Vergoz Haley Schreurs Alison Mercer doi:10.1126/science.1142448 Science, Vol. 317, No. 5836. (20 July 2007), pp. 384-386. 2007-07-23T19:19:14-00:00 2007 Science 317 5836 384 386 aversion bees learning