SFB 303 Discussion Paper No. B - 461

Author: Albers, Wulf, Robin Pope, Reinhard Selten and Bodo Vogt
Title: Experimental Evidence for Attractions to Chance
Abstract: Divide the decisionmaker's future into: (i) a pre-outcome period (lasting from the decision until the outcome of that decision is known), and (ii) a sequel post-outcome period (beginning when the outcome becomes known). Anticipated emotions in both periods may influence the decision, in particular, with regard to an outcome that matters to the person, the enjoyable tension from not yet knowing what this outcome will be. In the experiments presented, lottery choice can be explained by this attraction to chance, and cannot be explained by either convex von Neumann^Morgenstern utility, or by rank dependent risk loving weights: attraction to chance is a separate motivator.
Keywords: attractions to chance, pre-outcome / post-outcome distinction, agreeable pre-outcome tension, exogenous changes in tension, exogenous changes in the scope for post-outcome elation, regret
JEL-Classification-Number: D81
Creation-Date: December 1999
URL: ../1999/b/bonnsfb461.pdf

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