Challenge Theory: The Structure and Measurement of Risky Binary Choice Behavior

  title={Challenge Theory: The Structure and Measurement of Risky Binary Choice Behavior},
  author={Samuel Shye and Ido Haber},
  journal={arXiv: General Economics},
  • S. Shye, Ido Haber
  • Published 2020
  • Computer Science, Economics
  • arXiv: General Economics
Challenge Theory (Shye & Haber 2015; 2020) has demonstrated that a newly devised challenge index (CI) attributable to every binary choice problem predicts the popularity of the bold option, the one of lower probability to gain a higher monetary outcome (in a gain problem); and the one of higher probability to lose a lower monetary outcome (in a loss problem). In this paper we show how Facet Theory structures the choice-behavior concept-space and yields rationalized measurements of gambling… Expand


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