The effect of foregone payoffs on underweighting small probability events

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Unpacking the Exploration–Exploitation Tradeoff: A Synthesis of Human and Animal Literatures (2015, background): “…over a mixture of information and rewards for the selected option as in multi-armed bandit problems (Gittins, 1979), to a combination of information and rewards for the selected option and information about foregone payoffs in not-selected options (Erev & Barron, 2005; Yechiam & Busemeyer, 2006).”
Learning, risk attitude and hot stoves in restless bandit problems (2009, background): “When feedback is limited to the obtained payoffs the tendency to select the safe option is apt to increase with experience (see Erev and Barron (2005), Grosskopf, Erev, and Yechiam (2006), Munichor, Erev, and Lotem (2006) and Yechiam and Busemeyer (2006)).”
The Description-Experience Gap in Risky Choice: The Role of Sample Size and Experienced Probabilities (2008, background): “Indeed, Ert and Erev (2007) and Yechiam and Busemeyer (2006) have already made steps in this direction, finding a tendency to underweight rare events across other problems; so did Erev, Glozman, and Hertwig (2008).”