MULTIATTRIBUTE RISKY CHOICE BEHAVIOR: THE EDTING OF COMPLEX PROSPECTS.

Journal Article

This investigation draws upon concepts from prospect theory and multiattribute utility theory in an examination of the multiattribute risky choice behavior of 128 managers. The questions of how managers edit multiatribute prospects and how editing relates to various independence assumptions were explored. The major result is that managers appear to violate attribute independence in its general form, and especially in the form of the marginality assumption. The most common form of behavior observed was multiattibute risk aversion for prospects involving only gains and multiattribute risk seeking for proposects involving only losses.

Duke Authors

Cited Authors

  • Payne, JW; Laughhunn, DJ; Crum, R

Published Date

  • 1984

Published In

  • Management Science

Volume / Issue

  • 30 / 11

Start / End Page

  • 1350 - 1361