Risk perception: measurement and aggregation

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F25%3A00603446" target="_blank" >RIV/67985998:_____/25:00603446 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11620/25:10490566
Result on the web
<a href="https://doi.org/10.1093/jeea/jvae053" target="_blank" >https://doi.org/10.1093/jeea/jvae053</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1093/jeea/jvae053" target="_blank" >10.1093/jeea/jvae053</a>

Result language
angličtina
Original language name
Risk perception: measurement and aggregation
Original language description
In a model inspired by neuroscience, we study choice between lotteries as a process of encoding and decoding noisy perceptual signals. The implications of this process for behavior depend on the decision-maker’s understanding of risk. When the aggregation of perceptual signals is coarse, encoding and decoding generate behavioral risk attitudes even for vanishing perceptual noise. We show that the optimal encoding of lottery rewards is S-shaped and that low-probability events are optimally oversampled. Taken together, the model can explain adaptive-risk attitudes and probability weighting, as in prospect theory. Furthermore, it predicts that risk attitudes are influenced by the anticipation of risk, time pressure, experience, salience, and availability heuristics.
Czech name
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Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory

Project
<a href="/en/project/GA24-10145S" target="_blank" >GA24-10145S: Behavioral Economic Theory</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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