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decisions from experience

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"Decisions from experience" = sampling error + prospect theory: Reconsidering Hertwig, Barron, Weber & Erev (2004)

by: shinta, 3 pages

According to prospect theory, people overweight low probability events and underweight high probability events. Several recent papers (notably, Hertwig, Barron, Weber & Erev, 2004) have ...

On the relative importance of the hot stove effect and the tendency to rely on small samples

by: shinta, 7 pages

Experiments have suggested that decisions from experience differ from decisions from description. In experiencebased decisions, the decision makers often fail to maximise their payoffs. ...

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