“ When Optimal Choices Feel Wrong : A Laboratory Study of Bayesian Updating

@inproceedings{CHARNESS2003WO,
  title={“ When Optimal Choices Feel Wrong : A Laboratory Study of Bayesian Updating},
  author={GARY B. CHARNESS},
  year={2003}
}
  • GARY B. CHARNESS
  • Published 2003
We examine decision-making under risk and uncertainty in a laboratory experiment. The heart of our design examines how one’s propensity to use Bayes’ rule is affected by whether this rule is aligned with reinforcement or clashes with it. In some cases, we create environments where Bayesian updating after a successful outcome should lead a decision-maker to make a change, while no change should be made after observing an unsuccessful outcome. We observe striking patterns: When payoff… CONTINUE READING
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