Risk attitudes impact decision-making in games, challenging traditional theories.
Decision making is influenced by a person's attitude towards risk. A study looked at how players make decisions in games with perfect information, like chess or auctions, based on their risk attitude. The study used two theories, Expected Utility Theory and Prospect Theory, to predict player decisions. Participants showed risk-averse behavior towards gaining and risk-seeking behavior towards losing, similar to loss aversion in Prospect Theory. Both theories had similar predictive performance in the game, with around 35-40% accuracy.