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The effect of probability preferences in gambling situations.

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Author
Lindstrom, Jerry Duane
Date
1973-06
Advisor
Arima, James K.
Second Reader
Burnett, Thomas D.
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Abstract
An experiment was run to examine the main factors determining choices among bets in gambling situations. In the first experiment, where all the bets had an equal expected value, a specific set of preferences among probabilities was observed. The most important of these is a preference for a 4/8 probability of winning and an avoidance of a 6/8 probability of winning. In the second experiment, where all bets had differing expected values, it was shown that both preferences for bets with higher expected values and preferences among probabilities influence subjects' choices.
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
URI
http://hdl.handle.net/10945/16580
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