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- W2612761703 abstract "What should you do when confronting a sequence of decisions such that you make some choices and chance makes some others, i.e., a dynamic decision making problem under risk? Standard economic rationality requires you to look at the final choices, determine the preferred options, choose the sequence of decisions that lead to those and follow that sequence through to the end. That behaviour is implied by the conjunction of the principles of separability, dynamic consistency and reduction of compound lotteries. Experimental research on these dynamic choice principles has been developed within the common ratio effect theoretical framework. This paper experimentally investigates what subjects do when confronting such a problem within a new theoretical framework provided by the common consequence effect that manipulates the value of the foregone-consequence in the prior risks.Results suggest that reduction of compound lotteries holds throughout, whilst dynamic consistency and separability do not and theirfailure is related to the foregone-consequence." @default.
- W2612761703 created "2017-05-19" @default.
- W2612761703 creator A5059465236 @default.
- W2612761703 date "2017-03-30" @default.
- W2612761703 modified "2023-09-27" @default.
- W2612761703 title "Individual Dynamic Choice Behaviour and the Common Consequence Effect" @default.
- W2612761703 hasPublicationYear "2017" @default.
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