scholarly journals Subjective Values Theory: The Psychology of Value and Preferential Choice

2019 ◽  
Author(s):  
Dale Cohen ◽  
Amanda R. Cromley ◽  
Katelyn E. Freda ◽  
Madeline White
Keyword(s):  
Random Walk ◽  
Behavioral Economics ◽  
Prospect Theory ◽  
Utility Theory ◽  
Human Life ◽  
Sequential Sampling ◽  
A Priori ◽  
Decision Mechanism ◽  
Preferential Choice ◽  
Social Decisions

Here, we proposed Subjective Values Theory, a theory of the perception of value, andhow that perception drives preferential choice. Utility Theory, Prospect Theory, and traditional implementations of sequential sampling theory derive value from observers’ preferential choices. Subjective Values Theory goes beyond these theories by (a) precisely defining and measuring value independent of preferential choice, and (b) using these independent measurements of value to a priori predict preferential choice. We instantiate the decision mechanism proposed by Subjective Values Theory in a new Robust Random Walk (RRW) procedure. We evaluate the validity of Subjective Values Theory and the RRW in six experiments that measure the value of human lives and predict participants’ RTs and preferential choices in complex social decisions. In these experiments, we demonstrate that the process of perceiving Psychological Value is the same for objects and human lives, social status influences the perceived Psychological Value of a human life, and quantity has little or no influence on the perceived Psychological Value of human lives or objects. We discuss the implications of these findings in relation to decision theory, behavioral economics, and the psychology of morality.

Recognizing Job Apathy Patterns of Iraqi Higher Education Employees Using Data Mining Techniques

2019 ◽  
Vol 54 (4) ◽  
Author(s):  
Mustafa S. Abd ◽  
Suhad Faisal Behadili
Keyword(s):  
Higher Education ◽  
Data Mining ◽  
Psychiatric Patients ◽  
Human Life ◽  
A Priori ◽  
Psychological Research ◽  
Attribute Selection ◽  
Specific Class ◽  
Data Mining Techniques ◽  
Using Data

Psychological research centers help indirectly contact professionals from the fields of human life, job environment, family life, and psychological infrastructure for psychiatric patients. This research aims to detect job apathy patterns from the behavior of employee groups in the University of Baghdad and the Iraqi Ministry of Higher Education and Scientific Research. This investigation presents an approach using data mining techniques to acquire new knowledge and differs from statistical studies in terms of supporting the researchers’ evolving needs. These techniques manipulate redundant or irrelevant attributes to discover interesting patterns. The principal issue identifies several important and affective questions taken from a questionnaire, and the psychiatric researchers recommend these questions. Useless questions are pruned using the attribute selection method. Moreover, pieces of information gained through these questions are measured according to a specific class and ranked accordingly. Association and a priori algorithms are used to detect the most influential and interrelated questions in the questionnaire. Consequently, the decisive parameters that may lead to job apathy are determined.

scholarly journals Cumulative Prospect Theory Version with Fuzzy Values of Outcome Estimates

Risks ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 72
Author(s):  
Oleg Uzhga-Rebrov ◽  
Peter Grabusts
Keyword(s):  
Prospect Theory ◽  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Cumulative Prospect Theory ◽  
Development History ◽  
Decisions Under Risk ◽  
History Of ◽  
Main Factors ◽  
Theoretical Foundations

Choosing solutions under risk and uncertainty requires the consideration of several factors. One of the main factors in choosing a solution is modeling the decision maker’s attitude to risk. The expected utility theory was the first approach that allowed to correctly model various nuances of the attitude to risk. Further research in this area has led to the emergence of even more effective approaches to solving this problem. Currently, the most developed theory of choice with respect to decisions under risk conditions is the cumulative prospect theory. This paper presents the development history of various extensions of the original expected utility theory, and the analysis of the main properties of the cumulative prospect theory. The main result of this work is a fuzzy version of the prospect theory, which allows handling fuzzy values of the decisions (prospects). The paper presents the theoretical foundations of the proposed version, an illustrative practical example, and conclusions based on the results obtained.

Philosophy of Economics

2018 ◽  
Author(s):  
Mikaël Cozic
Keyword(s):  
Behavioral Economics ◽  
Mathematical Models ◽  
A Priori ◽  
The Core ◽  
Philosophy Of Economics ◽  
Empirical Significance ◽  
Bona Fide ◽  
The Impact ◽  
Empirical Methodology ◽  
Recent Extension

Although there are no doubts regarding the impact of economics in society and politics, doubts regarding its epistemological status endure. Does economics provide us with bona fide empirical theories? Are its mathematical models on a par with those of the hard sciences, or is its scientific character exaggerated? This chapter focuses on the key problem of the philosophy of economics: the reconciliation of its claim to empirical significance with what often appears as a non-empirical methodology, favoring deduction from a priori principles and showing little sensitivity to refutation by observation and experiment. Several attempts at answering this problem are considered, both in the Millian tradition and following neo-positivist approaches. Finally, the empirical status of the discipline is put in perspective with its recent extension to new fields of inquiry, such as behavioral economics and neuroeconomics, where experiments seem to be part of the core methodology.

scholarly journals To the judgments of N.A. Berdyaev about new religious consciousness development

2019 ◽  
Vol 72 ◽  
pp. 02010
Author(s):  
Natalia Gerlein
Keyword(s):  
Human Life ◽  
A Priori ◽  
Historical Context ◽  
Modern World ◽  
Russian Orthodox Church ◽  
Modern Culture ◽  
Local Council ◽  
Consciousness Development ◽  
Religious Consciousness ◽  
Main Support

The article presents an attempt to consider a new religious consciousness with the main support of N.A. Berdyaev works. The historical context of the spiritual movement development during a turning point in revolutionary Russia, which also occurs at the time of the Local Council, is considered. It also examines the influence of modern culture on the rooting of certain forms of thinking for modern man, the transformation of religious culture, as well as, in turn, the modification of the religion perception by society and its adaptation, or the adoption of a forced compromise by the Russian Orthodox Church. The article also focuses on the voice of the modern world, touches on the theme of technology dominance in human life, which, in particular, is the cause of a priori circulations in the type of religiosity. The article discusses an attempt to create new religious forms, proposes solutions related to the liberation of person.

Behavioral Decision Theory

2020 ◽  
Author(s):  
Kazuhisa Takemura
Keyword(s):  
Decision Making ◽  
Decision Theory ◽  
Behavioral Economics ◽  
Behavioral Finance ◽  
Utility Theory ◽  
Normative Theory ◽  
Behavioral Decision Theory ◽  
Behavioral Decision ◽  
Descriptive Theory ◽  
Human Decision

Behavioral decision theory is a descriptive psychological theory of human judgment, decision making, and behavior that can be applied to political science. Behavioral decision theory is closely related to behavioral economics and behavioral finance. Behavioral economics is an attempt to understand actual human economic behavior, and behavioral finance studies human behavior in financial markets. Research on people’s decision making represents an important part of these fields, in which various aspects overlap with the scope of behavioral decision theory. Behavioral decision theory focuses on the decision-making phenomena that are broadly divisible into those under certainty, those under risk, and others under uncertainty that includes ambiguity and ignorance. What are the theoretical frameworks that could be used to explain the decision-making phenomenon? Although numerous theories related to decision making have been developed, they are, in essence, often broadly divided into two types: normative theory and descriptive theory. The former is intended to support rational decision making. The latter describes how people actually make decisions. Both normative and descriptive theories reflect the nature of actual human decision making to a degree. Even descriptive theory seeks a certain level of rationality in actual human decision making. Consequently, the two are mutually indistinguishable. Nonetheless, a major example of normative theory is regarded as the system of utility theory that is widely used in economics. A salient example of descriptive theory is behavioral decision theory. Utility theory has numerous variations, such as linear and nonlinear utility theories. Most theories have established axioms and mathematically developed principles. In contrast, behavioral decision theory covers a considerably wide range of variations of theoretical expressions, including theories that have been developed mathematically (such as prospect theory) and those expressed only with natural language (such as multiattribute decision-making process models). Behavioral decision theory has integrated the implications of the normative theory, descriptive theory, and prescriptive theory that help people to make better decisions.

A Reference Point Logit Model for Estimating Substitution Probabilities Using Point of Sale Data

2018 ◽  
Vol 11 (4) ◽  
pp. 21-42
Author(s):  
Luis E. Castro ◽  
Yuan Ren ◽  
Nazrul I. Shaikh
Keyword(s):  
Prospect Theory ◽  
Consumer Choice ◽  
Logit Model ◽  
Utility Theory ◽  
Choice Behavior ◽  
Empirical Studies ◽  
Retail Store ◽  
Preference Structure ◽  
Point Of Sale ◽  
Consumer Choice Behavior

This article presents a practical approach to estimate the substitution probabilities between products at a retail store by using the store's point of sale data and prospect theory based structural restrictions on the consumer choice behavior. The prospect theory-based reference dependent preference structure imposed on the consumer choice behavior (a) accounts for how consumers make their original choice as well as how they substitute, (b) eliminates the IIA and IPS assumptions that the standard utility theory based models impose on consumer choice, and (c) alleviates the need for inventory information for estimating the substitution probabilities. Simulations and empirical studies have been used to show that the estimates of the substitution probabilities are efficient and are robust to stock-out rates.

scholarly journals An Experimental Comparison of Risky and Riskless Choice—Limitations of Prospect Theory and Expected Utility Theory

2019 ◽  
Vol 11 (3) ◽  
pp. 34-67 ◽  
Author(s):  
Hui-Kuan Chung ◽  
Paul Glimcher ◽  
Agnieszka Tymula
Keyword(s):  
Prospect Theory ◽  
Empirical Evidence ◽  
Expected Utility ◽  
Utility Theory ◽  
Expected Utility Theory ◽  
Experimental Comparison ◽  
Reference Dependence ◽  
Empirical Results ◽  
Incentive Compatible ◽  
Gain Loss

Prospect theory, used descriptively for decisions under both risk and certainty, presumes concave utility over gains and convex utility over losses; a pattern widely seen in lottery tasks. Although such discontinuous gain-loss reference-dependence is also used to model riskless choices, only limited empirical evidence supports this use. In incentive-compatible experiments, we find that gain-loss reflection effects are not observed under riskless choice as predicted by prospect theory, even while in the same subjects gain-loss reflection effects are observed under risk. Our empirical results challenge the application of choice models across both risky and riskless domains. (JEL C91, D12, D81)

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