Violations of first-order stochastic dominance as salience effects

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2015
Volume: 59
Issue: C
Pages: 42-46

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In contradiction to expected utility theory, various studies find that splitting events or attributes into subevents and subattributes can reverse a decision maker’s choices. Most notably, these effects can induce first-order stochastic dominated choices. Such violations of first-order stochastic dominance are framing effects, which expected utility theory, cumulative prospect theory and salience theory of choice under risk cannot account for. However, we propose a version of salience theory which unravels the underlying mechanism triggering such effects and which can explain the impact of event- and attribute-splitting on choices. Hereby, we provide further rationale for the broad validity of the salience mechanism and its strong descriptive power concerning human decision making.

Technical Details

RePEc Handle
repec:eee:soceco:v:59:y:2015:i:c:p:42-46
Journal Field
Experimental
Author Count
2
Added to Database
2026-01-25