5
votes
0answers
55 views

List of experiments contradicting the expected utility model

I proposed this question as an example question for the Area51 proposal "Mathematical modeling". User Artem Kaznatcheev suggested that it be asked here too, which I thought was a good idea. So I am ...
1
vote
0answers
18 views

Can we explain the tendency of investors dollar cost averaging in terms of loss aversion?

For those unfamiliar with the term Dollar cost averaging (DCA) is an investment strategy for reducing the impact of volatility on large purchases of financial assets such as equities. By ...
4
votes
1answer
101 views

Are people more likely to pick the odd one out?

I was wondering if there has been any research to suggest that when given a list of options to choose from, people are more likely to pick an option if it looks different to the other options? My ...
7
votes
3answers
209 views

Why prefer “99% fat free” to “1% fat”?

In my experience I tend to find low-fat products labelled as "99% fat free" much more often than the equivalent "1% fat".* Why is this so? To me it seems counter-intuitive, because it reminds me of ...
4
votes
1answer
63 views

What was the experiment where a person is given something and then has to share it with another person

Bob is given a bar of chocolate by the experimenter. Then he is to propose how he will share the chocolate with Emilly. If Emilly agrees with Bob's proposal, the kids will each get their share. If ...
7
votes
1answer
101 views

A study about preference for making relatively vs. absolute more money?

I remember reading about a study. I forgot the actual details of it, but the gist of it was: people were asked in what situation they would prefer to live, one where they make \$100,000 dollars and ...
9
votes
1answer
132 views

Bias towards purchasing tangible vs virtual goods

People may have very little hesitation in spending $3 on a coffee once a week, but when it comes to buying things online, such as virtual goods or services, they are often much more reluctant. Is ...
16
votes
2answers
873 views

What are popular rationalist responses to Tversky & Shafir?

In the early 90s Tversky & Shafir observed several violations of rationality in human participants, in particular violation of the disjunction effect and sure-thing principle. This has lead to ...
12
votes
2answers
1k views

Game-theory strategies to overcome holdout problem?

The hold-out problem often occurs in debt-restructuring or in urban development. The hold-out problem is defined where an agent, for example a land developer, must negotiate with many lot owners and ...