Decision Sciences
4 years ago

Contestants on Game Show Challenge Traditional Decision Theories, Reveal Risk Aversion

1 view
SSRN Electronic Journal
Testing the Predictions of Decision Theories in a Natural Experiment when Half a Million is at Stake
Pavlo R. Blavatskyy, Ganna Pogrebna

Paper Summary

The TV show Deal or No Deal was used to test different decision theories. Contestants from Italy and Britain did not make decisions based on risk neutrality or loss aversion. They showed regret aversion and became more risk averse after passing up high prizes. The fanning-out hypothesis was strongly supported. Nonlinear probability weighting and disappointment aversion were not observed.

Related papers

Economics, Econometrics and Finance
3 years ago

Randomly assigned treatments in economics test hypotheses with real-world impact.

Monetary Models
Economic Institutions
Behavioral Economics
1 view
Theme background image
Social Sciences
6 years ago

University students' quality needs drive education improvements, Kano model reveals.

Education Technology
Governance Studies
Education Trends
4 views
Economics, Econometrics and Finance
8 years ago

Central Bank's Inflation Target Lowers Unemployment, Boosts Wages in Imperfect Markets

Macroeconomic Analysis
Macroeconomic Trends
Monetary Models
3 views