Related Experiment Video
Updated: Jul 13, 2025
13:04
Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
Published on: September 19, 2012
12.1K
Risky decisions are influenced by individual attributes as a function of risk preference.
Douglas G Lee1, Marco D'Alessandro2, Pierpaolo Iodice3
1Tel Aviv University, School of Psychological Sciences, Tel Aviv, Israel; Institute of Cognitive Sciences and Technologies, National Research Council, Rome, Italy.
Cognitive Psychology
|October 14, 2023
Summary
Economic theory assumes decisions are made by comparing overall expected values. This study reveals risky decisions involve parallel attribute comparisons, challenging traditional economic models of choice.
Area of Science:
- Cognitive Science
- Behavioral Economics
- Decision Theory
Background:
- Standard economic theory posits multi-attribute decisions are resolved by comparing overall expected values.
- An alternative model suggests independent attribute comparisons before integration.
Purpose of the Study:
- To differentiate between models of decision-making by manipulating expected value and attribute salience.
- To investigate the cognitive processes underlying multi-attribute risky choices.
Main Methods:
- Developed a novel method to orthogonally vary expected value and attribute salience.
- Utilized behavioral measures and drift-diffusion models to analyze decision processes.
Main Results:
- Evidence supports a model where individual attributes independently influence deliberation.
- Risky decisions appear to be resolved through parallel attribute comparisons, potentially alongside expected value comparison.
- Attribute salience impacts individuals differently based on risk preference.
Conclusions:
- Cognitive decision processes may be more distributed than standard economic theory assumes.
- Findings challenge the necessity of a unique expected value comparison in choice.
- Differential effects of attribute salience on risk-averse versus risk-neutral/seeking individuals were observed.
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