Premium
The interaction of value and subjective probability in risky decision‐making
Author(s) -
Crozier W. R.
Publication year - 1979
Publication title -
british journal of psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.536
H-Index - 92
eISSN - 2044-8295
pISSN - 0007-1269
DOI - 10.1111/j.2044-8295.1979.tb01721.x
Subject(s) - psychology , subjective expected utility , variety (cybernetics) , value (mathematics) , social psychology , control (management) , cognitive psychology , expected utility hypothesis , statistics , mathematics , artificial intelligence , computer science
A central assumption of models of risky decision‐making is that value and subjective probability contribute independently to decisions. A number of studies have tested this assumption with a variety of experimental designs including asking subjects to make direct estimates of probability, guesses, wagers, and ratings of gambles. The results of these suggest that there is evidence of interaction, particularly when subjects choose between events of equal probability, one of which is valued. Theories of the conditions under which interaction occurs were considered, and there is support for the importance of distinctions between chance and skill control of outcomes, simple and complex tasks, and well‐ and ill‐defined tasks.