Saurabh Bedi
@saurabhbedi.bsky.social
PhD student in Neuroeconomics, University of Zurich | https://saurabh9729.github.io/saurabhbedi/
📢 Preprint out! biorxiv.org/content/10.1... What gives rise to probability weighting, a cornerstone of Prospect Theory?
We show it comes from the natural boundedness of probabilities + cognitive noise. Adding boundaries adds multiple distortions, across risky choice & perception.
We show it comes from the natural boundedness of probabilities + cognitive noise. Adding boundaries adds multiple distortions, across risky choice & perception.
Probability weighting arises from boundary repulsions of cognitive noise
In both risky choice and perception, people overweight small and underweight large probabilities. While prospect theory models this with a probability weighting function, and Bayesian noisy coding mod...
biorxiv.org
September 16, 2025 at 9:14 AM
📢 Preprint out! biorxiv.org/content/10.1... What gives rise to probability weighting, a cornerstone of Prospect Theory?
We show it comes from the natural boundedness of probabilities + cognitive noise. Adding boundaries adds multiple distortions, across risky choice & perception.
We show it comes from the natural boundedness of probabilities + cognitive noise. Adding boundaries adds multiple distortions, across risky choice & perception.