Discuss the experimental design

Reference no: EM133144321

Question 1: Explain the Allais Paradox illustrating the violation of the Expected Utility Theory. Consider the paper by John Conlisk (1989). Describe the "Three Steps Allais Question" experiment and how the author proposes to solve the Allais Paradox.

Question 2: Kahneman and Tversky (1979) criticize the Expected Utility Theory as a descriptive model of decision making under risk, and they propose the Prospect Theory as an alternative model for describing risk preferences of individual decision makers. Discuss the Certainty Effect and The Reflection Effect. Illustrate the main points of the Value Function, explaining how the reference point is determined and how gains and losses are evaluated under this theory. You should graphically support your explanation of the Value Function.

Question 3: Consider the article by Imas et al. (2016). Discuss the Experimental Design. In particular, you should explain the type of experiment used by the authors, the treatments chosen and the tasks undertaken by the participants. Compare the results between Experiment 1 and Experiment 2 reflecting on the underlying theoretical predictions.

Reference no: EM133144321

Questions Cloud

When should a coder generate a physician query : SCENARIO: Diego and Michelle were chatting at their cubicles before the coding manager came in for the day. They were having a discussion about the physician qu

Create a balance scored card for the business idea : Creating a company that will offer door to door delivery service. We hope to focus on fast and convenient medium and short distance delivery, including items an

Determine the activity cost associated with each patient : Determine the activity cost associated with each patient. If required, round all per unit amounts to the nearest cent

Objectives of community and economic development : What are the objectives of community and economic development?

Discuss the experimental design : Discuss the Experimental Design. In particular, you should explain the type of experiment used by the authors, the treatments chosen and the tasks

The qualities of leader such as being an innovator : The qualities of a leader such as being an innovator, strategist, or intelligent cannot stand alone in making a leader a great and successful leader

Submit a bibliography of research sources : Prepare and submit a bibliography of research sources that you plan to use for the Portfolio Project. The bibliography should include at least 10 credible refer

Develop a policy statement for employees : Answer the following questions (this will lead to the completion of your strategy proposal): My company is Safety Insurance Company.

User Account

All Pages