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PRODID:-//Department of Economics at Columbia University - ECPv4.6.23//NONSGML v1.0//EN
CALSCALE:GREGORIAN
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X-WR-CALNAME:Department of Economics at Columbia University
X-ORIGINAL-URL:https://econ.columbia.edu
X-WR-CALDESC:Events for Department of Economics at Columbia University
BEGIN:VEVENT
DTSTART;TZID=America/New_York:20170302T180000
DTEND;TZID=America/New_York:20170302T193000
DTSTAMP:20260601T213959
CREATED:20180718T150746Z
LAST-MODIFIED:20200402T183338Z
UID:10303-1488477600-1488483000@econ.columbia.edu
SUMMARY:Cary Frydman - "The Role of Salience and Attention in Choice Under Risk: An Experimental Investigation"
DESCRIPTION:\n\n\nWe conduct two experiments to test the predictions of a recently proposed theory of context-dependent choice under risk called salience theory. The theory predicts that a decision maker’s attention is drawn to precisely defined salient payoffs\, and these payoffs are overweighted in the choice process. In our first experiment\, subjects choose between risky lotteries and we exogenously manipulate the correlation structure between lotteries; this design feature provides an environment to separate salience theory from expected utility and cumulative prospect theory. In the second experiment\, we test whether attention has a causal impact on risky choice. We find two main results. First\, the correlation structure between lotteries has a systematic impact on risk taking. This result is predicted by salience theory\, but is inconsistent with all parameterizations of expected utility and cumulative prospect theory. Second\, we find evidence that manipulating attention through a visual salience channel has a causal\, but asymmetric\, impact on risky choice.\n\n\n\n
URL:https://econ.columbia.edu/event/cary-frydman-usc-the-role-of-salience-and-attention-in-choice-under-risk-an-experimental-investigation/
LOCATION:303 Uris Hall
CATEGORIES:Cognition and Decision Seminar Series
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