Abstract
An asymmetrical property of the probability weighting function, namely, subproportionality, was derived from observations. Subproportionality can provide a reasonable explanation for accommodating the Allais paradox and, therefore, deserves replication for its high impact. The present study aimed to explore the mechanism of subproportionality by comparing the two completely opposite decision mechanisms: prospect theory and equate-to-differentiate theory. Results revealed that the underlying mechanism supports the prediction of equate-to-differentiate theory but not prospect theory in the diagnostic stimuli condition. Knowledge regarding which intra-dimensional difference between Options A and B is greater, not knowledge regarding which option’s overall prospect value is greater, indeed predicts option preference. Our findings may deepen current understanding on the mechanisms behind the simple risky choice with a single-non-zero outcome. Additionally, these findings will hopefully encourage subsequent researchers to take a fresh look at the Allais paradox.
Funder
the National Natural Science Foundation of China
Subject
Physics and Astronomy (miscellaneous),General Mathematics,Chemistry (miscellaneous),Computer Science (miscellaneous)
Cited by
6 articles.
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