Journal article icon

Journal article

Optimal utility and probability functions for agents with finite computational precision

Abstract:

When making economic choices, such as those between goods or gambles, humans act as if their internal representation of the value and probability of a prospect is distorted away from its true value. These distortions give rise to decisions which apparently fail to maximize reward, and preferences that reverse without reason. Why would humans have evolved to encode value and probability in a distorted fashion, in the face of selective pressure for reward-maximizing choices? Here, we show that ...

Expand abstract
Publication status:
Published
Peer review status:
Peer reviewed

Actions


Access Document


Files:
Publisher copy:
10.1073/pnas.2002232118

Authors


More by this author
Institution:
University of Oxford
Division:
MSD
Department:
Experimental Psychology
Role:
Author
More by this author
Role:
Author
ORCID:
0000-0001-7312-0140
Publisher:
National Academy of Sciences
Journal:
Proceedings of the National Academy of Sciences More from this journal
Volume:
118
Issue:
2
Article number:
e2002232118
Publication date:
2020-12-30
Acceptance date:
2020-12-07
DOI:
EISSN:
1091-6490
ISSN:
0027-8424
Language:
English
Keywords:
Pubs id:
1156952
Local pid:
pubs:1156952
Deposit date:
2021-01-18

Terms of use


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP