Rubinstein2005-page51

# Rubinstein2005-page51 - stated is different Simplifying the...

This preview shows page 1. Sign up to view the full content.

October 21, 2005 12:18 master Sheet number 49 Page number 33 Choice 33 c. 200 people will be saved. d. With probability 1/3, all 600 will be saved and with probability 2/3, none will be saved. While only 22% of the Frst group chose a , 72% of the second group chose c . My experience offering both questions to 170 grad- uate students in New York, Princeton, and Tel Aviv is similar even though they were the same students who responded to the two ques- tions: 31% of the students chose a and 53% chose c . These are “problematic” results since, by any reasonable criterion a and c are identical alternatives, as are b and d . Thus, the choice from { a , b } should be consistent with the choice from { c , d } . The results expose the sensitivity of choice to the framing of the alterna- tives. What is more basic to rational decision making than taking the same choice when only the manner in which the problems are
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: stated is different? Simplifying the Choice Problem and the Use of Similarities The following experiment was also conducted by Tversky and Kah-neman. One group of subjects was presented with the following choice: Choose one of the two roulette games a or b . Your prize is the one corresponding to the outcome of the chosen roulette game as speciFed in the following tables: ( a ) Color White Red Green Yellow Chance % 90 6 1 3 Prize \$ 45 30 − 15 ( b ) Color White Red Green Yellow Chance % 90 7 1 2 Prize \$ 45 − 10 − 15 A different group of subjects was presented the same background information and asked to choose between: ( c ) Color White Red Green Blue Yellow Chance % 90 6 1 1 2 Prize \$ 45 30 − 15 − 15...
View Full Document

## This note was uploaded on 12/29/2011 for the course ECO 443 taught by Professor Aswa during the Fall '10 term at SUNY Stony Brook.

Ask a homework question - tutors are online