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- W2345765045 abstract "In many contexts, decision-making requires an accurate representation of outcome variance—otherwise known as “risk” in economics. Conventional economic theory assumes this representation to be perfect, thereby focusing on risk preferences rather than risk perception per se [1Holt C.A. Laury S.K. Risk aversion and incentive effects: new data without order effects.Am. Econ. Rev. 2005; 95: 902-904Crossref Scopus (206) Google Scholar, 2Holt C.A. Laury S.K. Risk aversion and incentive effects.Am. Econ. Rev. 2002; 92: 1644-1655Crossref Scopus (2918) Google Scholar, 3Laury S.K. Holt C.A. Payoff scale effects and risk preference under real and hypothetical conditions.in: Plott C.R. Smith V.L. Handbook of Experimental Economics Results. North Holland, 2008: 1047-1053Crossref Scopus (10) Google Scholar] (but see [4Christopoulos G.I. Tobler P.N. Bossaerts P. Dolan R.J. Schultz W. Neural correlates of value, risk, and risk aversion contributing to decision making under risk.J. Neurosci. 2009; 29: 12574-12583Crossref PubMed Scopus (281) Google Scholar]). However, humans often misrepresent their physical environment. Perhaps the most striking of such misrepresentations are the many well-known sensory after-effects, which most commonly involve visual properties, such as color, contrast, size, and motion. For example, viewing downward motion of a waterfall induces the anomalous biased experience of upward motion during subsequent viewing of static rocks to the side [5Barlow H.B. Hill R.M. Evidence for a physiological explanation of the waterfall phenomenon and figural after-effects.Nature. 1963; 200: 1345-1347Crossref PubMed Scopus (309) Google Scholar]. Given that after-effects are pervasive, occurring across a wide range of time horizons [6Glasser D.M. Tsui J.M.G. Pack C.C. Tadin D. Perceptual and neural consequences of rapid motion adaptation.Proc. Natl. Acad. Sci. USA. 2011; 108: E1080-E1088Crossref PubMed Scopus (70) Google Scholar] and stimulus dimensions (including properties such as face perception [7Webster M.A. Kaping D. Mizokami Y. Duhamel P. Adaptation to natural facial categories.Nature. 2004; 428: 557-561Crossref PubMed Scopus (515) Google Scholar, 8Leopold D.A. O’Toole A.J. Vetter T. Blanz V. Prototype-referenced shape encoding revealed by high-level aftereffects.Nat. Neurosci. 2001; 4: 89-94Crossref PubMed Scopus (689) Google Scholar], gender [9Jordan H. Fallah M. Stoner G.R. Adaptation of gender derived from biological motion.Nat. Neurosci. 2006; 9: 738-739Crossref PubMed Scopus (39) Google Scholar], and numerosity [10Burr D. Ross J. A visual sense of number.Curr. Biol. 2008; 18: 425-428Abstract Full Text Full Text PDF PubMed Scopus (420) Google Scholar]), and that some evidence exists that neurons show adaptation to variance in the sole visual feature of motion [11Fairhall A.L. Lewen G.D. Bialek W. de Ruyter Van Steveninck R.R. Efficiency and ambiguity in an adaptive neural code.Nature. 2001; 412: 787-792Crossref PubMed Scopus (577) Google Scholar], we were interested in assessing whether after-effects distort variance perception in humans. We found that perceived variance is decreased after prolonged exposure to high variance and increased after exposure to low variance within a number of different visual representations of variance. We demonstrate these after-effects occur across very different visual representations of variance, suggesting that these effects are not sensory, but operate at a high (cognitive) level of information processing. These results suggest, therefore, that variance constitutes an independent cognitive property and that prolonged exposure to extreme variance distorts risk perception—a fundamental challenge for economic theory and practice." @default.
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- W2345765045 date "2016-06-01" @default.
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- W2345765045 title "Variance After-Effects Distort Risk Perception in Humans" @default.
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- W2345765045 doi "https://doi.org/10.1016/j.cub.2016.04.023" @default.
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