Probabilities, delays and social distances: decision-making in different domains

I start the thesis with a focusing model in which increasing the range of values of an attribute makes the decision-maker place more weight on this attribute. This model explains the documented communality between risky choice and intertemporal choice, and provides a unique explanation to the common...

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Main Author: Castillo, Geoffrey
Format: Thesis (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/41361/
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author Castillo, Geoffrey
author_facet Castillo, Geoffrey
author_sort Castillo, Geoffrey
building Nottingham Research Data Repository
collection Online Access
description I start the thesis with a focusing model in which increasing the range of values of an attribute makes the decision-maker place more weight on this attribute. This model explains the documented communality between risky choice and intertemporal choice, and provides a unique explanation to the common ratio, common delay, and magnitude effects. It also captures preference reversals between choice and valuation, and different forms of context dependence such as the asymmetric dominance effect. Since the model is not restricted to probabilities and temporal delays, I also apply it to allocations characterised by an amount of money and a social distance. It predicts ‘common social distance’ effects, magnitude effects in the social domain, and preference reversals between choice and valuation of allocations. I look for these social preference reversals in the second Chapter. I invite student subjects in the laboratory and isolate the effect of the social distance by comparing weak social distances, with allocations benefiting students in other Faculties, to strong social distances, where the allocations benefit widely different charities. Social distances are measured with tools developed in social psychology. I find preference reversals only with weak social distances, where subjects do not take into account social distances when they form a valuation. When social distances become stronger with the charities, subjects take social distances into account for both choice and valuation and preference reversals disappear. These results confirm that social preference reversals exist and that social distances are a relevant attribute. Finally, in the last Chapter, I test the main assumption of the model in the context of the asymmetric dominance effect. I replicate the effect but find it to be smaller than previously thought. Especially, it disappears when targeting risky low-probability, high-payoff gambles. There is also evidence of a range effect, which verifies the assumption of the model presented in the first Chapter.
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format Thesis (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2017
recordtype eprints
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spelling nottingham-413612025-02-28T13:42:55Z https://eprints.nottingham.ac.uk/41361/ Probabilities, delays and social distances: decision-making in different domains Castillo, Geoffrey I start the thesis with a focusing model in which increasing the range of values of an attribute makes the decision-maker place more weight on this attribute. This model explains the documented communality between risky choice and intertemporal choice, and provides a unique explanation to the common ratio, common delay, and magnitude effects. It also captures preference reversals between choice and valuation, and different forms of context dependence such as the asymmetric dominance effect. Since the model is not restricted to probabilities and temporal delays, I also apply it to allocations characterised by an amount of money and a social distance. It predicts ‘common social distance’ effects, magnitude effects in the social domain, and preference reversals between choice and valuation of allocations. I look for these social preference reversals in the second Chapter. I invite student subjects in the laboratory and isolate the effect of the social distance by comparing weak social distances, with allocations benefiting students in other Faculties, to strong social distances, where the allocations benefit widely different charities. Social distances are measured with tools developed in social psychology. I find preference reversals only with weak social distances, where subjects do not take into account social distances when they form a valuation. When social distances become stronger with the charities, subjects take social distances into account for both choice and valuation and preference reversals disappear. These results confirm that social preference reversals exist and that social distances are a relevant attribute. Finally, in the last Chapter, I test the main assumption of the model in the context of the asymmetric dominance effect. I replicate the effect but find it to be smaller than previously thought. Especially, it disappears when targeting risky low-probability, high-payoff gambles. There is also evidence of a range effect, which verifies the assumption of the model presented in the first Chapter. 2017-07-19 Thesis (University of Nottingham only) NonPeerReviewed application/pdf en arr https://eprints.nottingham.ac.uk/41361/1/geoffrey-castillo_thesis.pdf Castillo, Geoffrey (2017) Probabilities, delays and social distances: decision-making in different domains. PhD thesis, University of Nottingham. individual decision making probabilities social distances delays behavioural economics experimental economics choice over risk choice under uncertainty choice over time intertemporal choice choice across social distances
spellingShingle individual decision making
probabilities
social distances
delays
behavioural economics
experimental economics
choice over risk
choice under uncertainty
choice over time
intertemporal choice
choice across social distances
Castillo, Geoffrey
Probabilities, delays and social distances: decision-making in different domains
title Probabilities, delays and social distances: decision-making in different domains
title_full Probabilities, delays and social distances: decision-making in different domains
title_fullStr Probabilities, delays and social distances: decision-making in different domains
title_full_unstemmed Probabilities, delays and social distances: decision-making in different domains
title_short Probabilities, delays and social distances: decision-making in different domains
title_sort probabilities, delays and social distances: decision-making in different domains
topic individual decision making
probabilities
social distances
delays
behavioural economics
experimental economics
choice over risk
choice under uncertainty
choice over time
intertemporal choice
choice across social distances
url https://eprints.nottingham.ac.uk/41361/