Small feedback-based decisions and their limited correspondence to description-based decisions Export

@article{citeulike:6067111, abstract = {The present paper explores situations in which the information available to decision makers is limited to feedback concerning the outcomes of their previous decisions. The results reveal that experience in these situations can lead to deviations from maximization in the opposite direction of the deviations observed when the decisions are made based on a description of the choice problem. Experience was found to lead to a reversed common ratio/certainty effect, more risk seeking in the gain than in the loss domain, and to an underweighting of small probabilities. Only one of the examined properties of description-based decisions, loss aversion, seems to emerge robustly in these lsquofeedback-basedrsquo decisions. These results are summarized with a simple model that illustrates that all the unique properties of feedback-based decisions can be a product of a tendency to rely on recent outcomes. Copyright {\copyright} 2003 John Wiley \& Sons, Ltd.}, address = {Faculty of Industrial Engineering and Management, Technion, Haifa, Israel}, author = {Barron, Greg and Erev, Ido}, citeulike-article-id = {6067111}, citeulike-linkout-0 = {http://dx.doi.org/10.1002/bdm.443}, citeulike-linkout-1 = {http://www3.interscience.wiley.com/cgi-bin/abstract/104533839/ABSTRACT}, doi = {10.1002/bdm.443}, issn = {1099-0771}, journal = {Journal of Behavioral Decision Making}, keywords = {conscious\_vs\_unconscious\_uncertainty, decisions}, number = {3}, pages = {215--233}, posted-at = {2009-11-04 09:38:13}, priority = {4}, title = {Small feedback-based decisions and their limited correspondence to description-based decisions}, url = {http://dx.doi.org/10.1002/bdm.443}, volume = {16}, year = {2003} }

TY - JOUR ID - citeulike:6067111 L3 - citeulike-article-id:6067111 N2 - The present paper explores situations in which the information available to decision makers is limited to feedback concerning the outcomes of their previous decisions. The results reveal that experience in these situations can lead to deviations from maximization in the opposite direction of the deviations observed when the decisions are made based on a description of the choice problem. Experience was found to lead to a reversed common ratio/certainty effect, more risk seeking in the gain than in the loss domain, and to an underweighting of small probabilities. Only one of the examined properties of description-based decisions, loss aversion, seems to emerge robustly in these lsquofeedback-basedrsquo decisions. These results are summarized with a simple model that illustrates that all the unique properties of feedback-based decisions can be a product of a tendency to rely on recent outcomes. Copyright © 2003 John Wiley & Sons, Ltd. IS - 3 JF - Journal of Behavioral Decision Making SN - 1099-0771 AD - Faculty of Industrial Engineering and Management, Technion, Haifa, Israel EP - 233 TI - Small feedback-based decisions and their limited correspondence to description-based decisions VL - 16 SP - 215 KW - conscious_vs_unconscious_uncertainty KW - decisions AU - Barron, Greg AU - Erev, Ido PY - 2003/// UR - http://dx.doi.org/10.1002/bdm.443 ER -