@article{7583515cd6924af7afafa0474d73c827,
title = "Strength of preference and decisions under risk",
abstract = "Influential economic approaches as random utility models assume a monotonic relation between choice frequencies and “strength of preference,” in line with widespread evidence from the cognitive sciences, which also document an inverse relation to response times. However, for economic decisions under risk, these effects are largely untested, because models used to fit data assume them. Further, the dimension underlying strength of preference remains unclear in economics, with candidates including payoff-irrelevant numerical magnitudes. We provide a systematic, out-of-sample empirical validation of these relations (both for choices and response times) relying on both a new experimental design and simulations.",
keywords = "D01, D81, D91, Decision errors, Risk attitude, Stochastic choice, Strength of preference",
author = "Carlos Al{\'o}s-Ferrer and Michele Garagnani",
note = "Funding Information: The authors thank Jos{\'e} Apestegu{\'i}a, Larbi Alaoui, Miguel Ballester, Sudeep Bhatia, Michael Birnbaum, Andrew Caplin, Nick Chater, Giorgio Coricelli, Ernst Fehr, Fabio Maccheroni, Paola Manzini, Paulo Natenzon, Nick Netzer, Antonio Penta, Antonio Rangel, Aldo Rustichini, Michael Woodford, and seminar audiences at the TIBER Symposium (Tilburg, 2018), the Conference on Decision Sciences (Konstanz, 2018), the Workshop on Stochastic Choice (Barcelona, 2019), the Sloan-Nomis Workshop on the Cognitive Foundations of Economic Behavior (Vitznau, 2019), as well as the SAET (Ischia, 2019), AISC (Lucca, 2019), and IAREP (Dublin, 2019) conferences. Financial support from the German Science Foundation (DFG), research unit “PsychoEconomics” (FOR 1882), project Al-1169/4, is gratefully acknowledged. Funding Information: The authors thank Jos{\'e} Apestegu{\'i}a, Larbi Alaoui, Miguel Ballester, Sudeep Bhatia, Michael Birnbaum, Andrew Caplin, Nick Chater, Giorgio Coricelli, Ernst Fehr, Fabio Maccheroni, Paola Manzini, Paulo Natenzon, Nick Netzer, Antonio Penta, Antonio Rangel, Aldo Rustichini, Michael Woodford, and seminar audiences at the TIBER Symposium (Tilburg, 2018), the Conference on Decision Sciences (Konstanz, 2018), the Workshop on Stochastic Choice (Barcelona, 2019), the Sloan-Nomis Workshop on the Cognitive Foundations of Economic Behavior (Vitznau, 2019), as well as the SAET (Ischia, 2019), AISC (Lucca, 2019), and IAREP (Dublin, 2019) conferences. Financial support from the German Science Foundation (DFG), research unit “PsychoEconomics” (FOR 1882), project Al-1169/4, is gratefully acknowledged. Publisher Copyright: {\textcopyright} 2022, The Author(s).",
year = "2022",
month = jun,
doi = "10.1007/s11166-022-09381-0",
language = "English (US)",
volume = "64",
pages = "309--329",
journal = "Journal of Risk and Uncertainty",
issn = "0895-5646",
publisher = "Springer Netherlands",
number = "3",
}