The influence of probabilities on the response mode bias in utility elicitation

Abstract

Utility elicitation, Response mode bias, Probabilities, Risk preference, Cardinal measurement, Arrow–Pratt measure, Gain and loss,

Probabilistic discounting of hypothetical monetary gains: University students differ in how they discount “won” and “owed” money

“…Thus, the data from the most extreme probabilities were analyzed separately from AUC values to determine if the manipulations of whether the money was won or owed and whether the amount was small or large, or both, would be differentially influential when the outcome was very likely or very unlikely. Such differences might be expected from a theoretical perspective, given that risk aversion or proneness may vary as a function of whether or not the outcome is likely or unlikely (e.g., Schwand, Vetschera, & Wakolbinger, 2010). Prior to conducting these analyses, the indifference points for the $100,000 outcomes were divided by 100 so as to standardize the values between the two amounts.…”

Investigating financial decision-making when facing skewed distributions of return: A survey study in Vietnam

“…Both modern and proven concepts seek to resolve economic and financial issues. However, the reaction mode bias, in which subjects show distinctive risk states of mind when evaluating certainty counterparts versus impassion probabilities, could be a well-known bias within the appraisal of utility functions (Schwand, Vetschera, & Wakolbinger, 2010).…”