Topic: risk-taking

Contrary to the original normative decision-making standpoint, empirical studies have repeatedly reported that risk preferences are affected by the disclosure of choice outcomes (feedback). Although no consensus has yet emerged regarding the properties and mechanisms of this effect, a widespread and intuitive hypothesis is that repeated feedback affects risk preferences by means of a learning effect, which alters the representation of subjective probabilities. Here, we ran a series of seven experiments (N= 538), tailored to decipher the effects of feedback on risk preferences. Our results indi

Framing effects in individual decision-making have puzzled economists for decades because they are hard, if at all, to explain with rational choice theories. Why should mere changes in the description of a choice problem affect decision-making? Here, we examine the hypothesis that changes in framing cause changes in the allocation of attention to the different options – measured via eye-tracking – and give rise to changes in decision-making. We document that the framing of a sure alternative as a gain – as opposed to a loss – in a risk-taking task increases the attentional advantage of the sur