Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81542
Authors: 
Ramirez, Patrick A.
Levine, Daniel S.
Year of Publication: 
2013
Series/Report no.: 
Economics Discussion Papers 2013-47
Abstract: 
This review considers two explanations for behavioral decision-making in reference to the certainty and framing effects. The findings from various paradigms such as a single questionnaire, gambles with repetition, and gambles guided by feedback are explained either by prospect theory or by expected utility theory. Finally this review attempts to account for the different findings and offers a possible explanation for the conflicting results by considering the role of experience which in turn can alter how information in processed as described by fuzzy trace theory which is a dual process theory of reasoning.
Subjects: 
expected utility theory
prospect theory
fuzzy trace theory
certainty effect
framing effect
JEL: 
A10
Y80
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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