The uncertainty effect: When a risky prospect is valued less than its worst possible outcome

By Uri Gneezy, John A. List, George Wu. 2006

322 citations recorded by the source corpus.

Subfields: Economics and Econometrics, General Decision Sciences

View Paper: https://www.semanticscholar.org/paper/21e9e42ab4dda7333d47a4893f1c8af6bfb312e7

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Citations in the corpus

Fear of the Unknown: Familiarity and Economic Decisions (2007, background): “, Poterba and Summers (1995), Graham and Harvey (2001)).”
Certain and Uncertain Utility: The Allais Paradox and Five Decision Theory Phenomena (2010, methodology): “The results of Gneezy et al. (2006) are potentially suggestive of certain outcomes being assessed differently than uncertain outcomes.”
“If I look at the mass I will never act”: Psychic numbing and genocide (2007, unknown): “A more promising path might be to force System 2 to play a stronger role, not just to provide us with reasons why genocide is wrong—these reasons are obvious and System 1 will appropriately sense their moral messages (Haidt, 2001). As Kahneman (2003) argues, one of the important functions of System ”
Risk Preferences Are Not Time Preferences (2012, background): “Second, the ‘uncertainty effect’, in which a lottery is valued lower than the certainty of its worst possible outcome, is at odds with a number of utility theories, including both expected utility and prospect theory (Gneezy et al., 2006; Simonsohn, 2009).”
Risk Preferences are Not Time Preferences: Discounted Expected Utility with a Disproportionate Preference for Certainty (2010, background): “The only evidence of intertemporal violations of EU known to the authors is Baucells and Heukamp (2009) and Gneezy et al. (2006) who show that temporal delay can generate an effect akin to the classic common ratio effect and that the uncertainty effect is present for hypothetical intertemporal decis”
Risk Preferences Around the World (2015, background): “…of internality (lottery 1) and without all lotteries involving relatively small probabilities (lotteries 1, 3, and 5, which involve Although Gneezy et al. (2006) report violations of internality resulting from the uncertainty effect, they note that two essential conditions are required:…”
The Motivating-Uncertainty Effect: Uncertainty Increases Resource Investment in the Process of Reward Pursuit (2015, unknown): “Closing Remarks For centuries, research on uncertainty has mainly investigated the negative impact on judgment (Gneezy et al. 2006) and choice (Bernoulli 1738; Kahneman and Tversky 1979).”
The Teasing Effect: An Underappreciated Benefit of Creating and Resolving an Uncertainty (2018, background): “…http://dx.doi.org/10.1509/jmr.15.0346 The Teasing Effect: An Underappreciated Benefit of Creating and Resolving an Uncertainty Uncertainty is generally regarded as aversive (e.g., Buhr and Dugas 2002; Castaño et al. 2008; Gneezy, List, and Wu 2006; Gordon 2003;Hsee andRuan 2016;Van denBos 2001).”