When Optimal Choices Feel Wrong: A Laboratory Study of Bayesian Updating, Complexity, and Affect

We examine decision-making under risk in a laboratory experiment. The heart of our design examines how one's propensity to use Bayes' rule is affected by whether this rule is aligned with reinforcement or clashes with it. In some cases, we create environments where Bayesian updating after...

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Bibliographic Details
Published in:	The American economic review Vol. 95; no. 4; pp. 1300 - 1309
Main Authors:	Charness, Gary, Levin, Dan
Format:	Journal Article
Language:	English
Published:	Nashville American Economic Association 01.09.2005
Subjects:	Bayes rule Bayesian analysis Bayesian method Binomials Cost efficiency Decision making Decision theory Economic costs Economic theory Economics Emotions Error rates Errors Expected utility Experiments Game theory Heuristic Heuristics Investors Laboratories Payments Psychological reinforcement Reinforcement Risk Shorter Papers Studies Success Utility theory
ISSN:	0002-8282, 1944-7981
Online Access:	Get full text
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