Jove
Visualize
Contact Us

Related Concept Videos

The Anchoring-and-Adjustment Heuristic01:25

The Anchoring-and-Adjustment Heuristic

7.4K
In order to make good decisions, we use our knowledge and our reasoning. Often, this knowledge and reasoning is sound and solid. However, sometimes, we are swayed by biases or by others manipulating a situation. For example, let’s say you and three friends wanted to rent a house and had a combined target budget of $1,600. The realtor shows you only very run-down houses for $1,600 and then shows you a very nice house for $2,000. Might you ask each person to pay more in rent to get the...
7.4K
Hindsight Biases01:12

Hindsight Biases

3.9K
Hindsight bias leads you to believe that the event you just experienced was predictable, even though it really wasn’t. In other words, you knew all along that things would turn out the way they did. Can you relate this to the phrase "Hindsight is 20/20" now? 
3.9K
Fundamental Attribution Error01:14

Fundamental Attribution Error

13.2K
According to some social psychologists, people tend to overemphasize internal factors as explanations—or attributions—for the behavior of other people. They tend to assume that the behavior of another person is a trait of that person, and to underestimate the power of the situation on the behavior of others. They tend to fail to recognize when the behavior of another is due to situational variables, and thus to the person’s state. This erroneous assumption is...
13.2K
Cause and Effect01:53

Cause and Effect

11.3K
While variables are sometimes correlated because one does cause the other, it could also be that some other factor, a confounding variable, is actually causing the systematic movement in our variables of interest. For instance, as sales in ice cream increase, so does the overall rate of crime. Is it possible that indulging in your favorite flavor of ice cream could send you on a crime spree? Or, after committing crime do you think you might decide to treat yourself to a cone?
11.3K
Uncertainty: Overview00:59

Uncertainty: Overview

964
In analytical chemistry, we often perform repetitive measurements to detect and minimize inaccuracies caused by both determinate and indeterminate errors. Despite the cares we take, the presence of random errors means that repeated measurements almost never have exactly the same magnitude. The collective difference between these measurements - observed values - and the estimated or expected value is called uncertainty. Uncertainty is conventionally written after the estimated or expected value.
964
The Availability Heuristic01:08

The Availability Heuristic

6.4K
A heuristic is a general problem-solving framework (Tversky & Kahneman, 1974). You can think of these as mental shortcuts that are used to solve problems. Different types of heuristics are used in different types of situations, and the impulse to use a heuristic occurs when one of five conditions is met (Pratkanis, 1989):
6.4K

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same journal

Adapting temporal preference to scarcity: A role for emotion?

Journal of risk and uncertainty·2025
Same journal

Grit, discounting, & time inconsistency.

Journal of risk and uncertainty·2025
Same journal

Monetary values of increasing life expectancy: Sensitivity to shifts of the survival curve.

Journal of risk and uncertainty·2023
Same journal

On the role of monetary incentives in risk preference elicitation experiments.

Journal of risk and uncertainty·2023
Same journal

Risky choice: Probability weighting explains independence axiom violations in monkeys.

Journal of risk and uncertainty·2023
Same journal

Seen and not seen: How people judge ambiguous behavior during the COVID-19 pandemic.

Journal of risk and uncertainty·2022
See all related articles
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Video

Updated: Sep 7, 2025

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations
09:07

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations

Published on: September 16, 2015

9.1K

Choice uncertainty and the endowment effect.

Christina McGranaghan1, Steven G Otto2

  • 1University of Delaware, 531 S College Ave, Newark, DE 19716 USA.

Journal of Risk and Uncertainty
|June 22, 2022
PubMed
Summary
This summary is machine-generated.

Choice uncertainty significantly impacts endowment effects, reducing under-trading and valuation differences between buyers and sellers. Value uncertainty remains a key factor even when product uncertainty is resolved.

Keywords:
Choice uncertaintyEndowment effectExchange asymmetryValue learning

More Related Videos

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
13:04

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

12.2K
Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
11:51

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making

Published on: March 2, 2011

15.2K

Related Experiment Videos

Last Updated: Sep 7, 2025

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations
09:07

Experimental Research Examining How People Can Cope with Uncertainty Through Soft Haptic Sensations

Published on: September 16, 2015

9.1K
Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
13:04

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

12.2K
Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making
11:51

Combining Behavioral Endocrinology and Experimental Economics: Testosterone and Social Decision Making

Published on: March 2, 2011

15.2K

Area of Science:

  • Behavioral Economics
  • Decision Science
  • Psychology

Background:

  • Endowment effects, where ownership increases valuation, are well-documented.
  • Existing research highlights trade uncertainty's role, but choice uncertainty's impact is less explored.

Purpose of the Study:

  • To experimentally investigate the role of choice uncertainty in generating endowment effects.
  • To provide novel evidence on the significance of choice uncertainty in trading and stated valuations.

Main Methods:

  • Experimental manipulation of choice uncertainty in valuation and exchange tasks.
  • Comparison of buyer and seller valuations under varying levels of choice uncertainty.

Main Results:

  • Reducing choice uncertainty eliminated under-trading and decreased valuation disparities between buyers and sellers.
  • The effect was primarily driven by a reduction in extreme seller valuations.
  • Mutually acceptable trades implied by stated valuations did not significantly increase.

Conclusions:

  • Choice uncertainty plays a significant role in endowment effects and valuation asymmetries.
  • Value uncertainty continues to influence valuations even after product uncertainty is addressed.