Utility
Instructions
Assume you are given 300
Euro. Please choose between
A1: a sure gain
of 100 Euro
A2: a 50% chance to
gain 200 Euro.
Assume you are given 500 Euro.
Please choose between
B1: a sure loss
of 100 Euro
B2: a 50% chance to
lose 200 Euro
Evaluations
Number of players: 31
Frequency of different decisions:
Comments
In large scale experiments,
it has been found that 74% prefer a sure gain of 100 Euro (A1) to a 50%
chance to gain 200 Euro (A2), whereas 64% chose a 50% chance to lose 200
Euro (B1) over a sure loss of 100 Euro (B1).
Written by Christoph Hauert