compareEV: Compare the expected value (EV) of choice gambles.

In gary-au/pt: Computational models for prospect theory and other theories of risky decision making

Description

Compare the expected value (EV) of choice gambles.

Usage

compareEV(object, digits)

## S4 method for signature 'Choices'
compareEV(object, digits)

Arguments

object	Choices, an instance of a Choices class.
digits	numeric, the number of digits to display in the output.

References

Montgomery, H., & Adelbratt, T. (1982). Gambling decisions and information about expected value. Organizational Behavior and Human Performance, 29(1), 39-57.

Lichtenstein, S., Slovic, P., & Zink, D. (1969). Effect of instruction in expected value on optimality of gambling decisions. Journal of Experimental Psychology, 79(2, Pt.1), 236-240.

Li, S. (2003). The role of Expected Value illustrated in decision-making under risk: Single-play vs multiple-play. Journal of Risk Research, 6(2), 113-124.

Colbert, G., Murray, D., & Nieschwietz, R. (2009). The use of expected value in pricing judgments. Journal of Risk Research, 12(2), 199-208.

Yates, J. F. (1990). Judgment and decision making. Englewood Cliffs, NJ: Prentice Hall.

Examples

# This example creates the two Allais common consequence paradox choices,
# and computes the EV for each gamble in the choices.

choice_ids <- c(1, 1, 1, 1, 2, 2, 2, 2)

gamble_ids <- c(1, 1, 1, 2, 1, 1, 2, 2)

outcome_ids <- c(1, 2, 3, 1, 1, 2, 1, 2)

objective_consequences <- c(2500, 2400, 0, 2400,
	2500, 0, 2400, 0)

probability_strings <- c("0.33", "0.66", "0.01", "1.0",
	"0.33", "0.67", "0.34", "0.66")

my_choices <- Choices(choice_ids=choice_ids,
	gamble_ids=gamble_ids,
	outcome_ids=outcome_ids,
	objective_consequences=objective_consequences,
	probability_strings=probability_strings)

my_choices

compareEV(my_choices, digits=4)

gary-au/pt documentation built on May 16, 2019, 5:41 p.m.