Towards simpler models of choice behaviour

This paper argues that modelling specific psychological processes, rather than modelling observed behaviour, enables the design of simpler models that provide a psychologically grounded explanation of choice under risk. As a particular case, it studies the process of weighing the more favourable and...

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Detalles Bibliográficos
Autor: Rodríguez Puerta, Inmaculada
Tipo de recurso: artículo
Fecha de publicación:2026
País:España
Institución:Universidad Pablo de Olavide (UPO)
Repositorio:RIO. Repositorio Institucional Olavide
Idioma:inglés
OAI Identifier:oai:dnet:rio_________::78c20946b1509d05f3cf80a6513c7e66
Acceso en línea:https://hdl.handle.net/10433/26461
Access Level:acceso abierto
Palabra clave:Modelling behaviour
Loss aversion
Reference point
Probability weighting
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spelling Towards simpler models of choice behaviourRodríguez Puerta, InmaculadaModelling behaviourLoss aversionReference pointProbability weightingThis paper argues that modelling specific psychological processes, rather than modelling observed behaviour, enables the design of simpler models that provide a psychologically grounded explanation of choice under risk. As a particular case, it studies the process of weighing the more favourable and less favourable parts of each alternative and shows how this process yields a model that, through a single function, captures behavioural patterns typically described by multiple components. Formalising this process leads to two structural assumptions: within each choice set, a common separation point divides the outcomes of the alternatives into favourable and unfavourable outcomes, and this point acts as a reference point for relative valuation. Under these assumptions, a minimal valuation structure based on sensitivity to less favourable outcomes is sufficient to account for different attitudes towards risk, the reflection effect, and biases in probability perception. The approach thus provides a parsimonious framework in which loss aversion is reinterpreted as sensitivity to relatively less favourable outcomes, without the need to introduce separately a probability-weighting function and a value function over monetary outcomes.Elsevier20262026-04-1420262026-01-0120262026-01-01journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10433/26461reponame:RIO. Repositorio Institucional Olavideinstname:Universidad Pablo de Olavide (UPO)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial 4.0 Internationalhttp://creativecommons.org/licenses/by-nc/4.0/info:eu-repo/semantics/openAccessoai:dnet:rio_________::78c20946b1509d05f3cf80a6513c7e662026-06-13T12:46:27Z
dc.title.none.fl_str_mv Towards simpler models of choice behaviour
title Towards simpler models of choice behaviour
spellingShingle Towards simpler models of choice behaviour
Rodríguez Puerta, Inmaculada
Modelling behaviour
Loss aversion
Reference point
Probability weighting
title_short Towards simpler models of choice behaviour
title_full Towards simpler models of choice behaviour
title_fullStr Towards simpler models of choice behaviour
title_full_unstemmed Towards simpler models of choice behaviour
title_sort Towards simpler models of choice behaviour
dc.creator.none.fl_str_mv Rodríguez Puerta, Inmaculada
author Rodríguez Puerta, Inmaculada
author_facet Rodríguez Puerta, Inmaculada
author_role author
dc.contributor.none.fl_str_mv
dc.subject.none.fl_str_mv Modelling behaviour
Loss aversion
Reference point
Probability weighting
topic Modelling behaviour
Loss aversion
Reference point
Probability weighting
description This paper argues that modelling specific psychological processes, rather than modelling observed behaviour, enables the design of simpler models that provide a psychologically grounded explanation of choice under risk. As a particular case, it studies the process of weighing the more favourable and less favourable parts of each alternative and shows how this process yields a model that, through a single function, captures behavioural patterns typically described by multiple components. Formalising this process leads to two structural assumptions: within each choice set, a common separation point divides the outcomes of the alternatives into favourable and unfavourable outcomes, and this point acts as a reference point for relative valuation. Under these assumptions, a minimal valuation structure based on sensitivity to less favourable outcomes is sufficient to account for different attitudes towards risk, the reflection effect, and biases in probability perception. The approach thus provides a parsimonious framework in which loss aversion is reinterpreted as sensitivity to relatively less favourable outcomes, without the need to introduce separately a probability-weighting function and a value function over monetary outcomes.
publishDate 2026
dc.date.none.fl_str_mv 2026
2026-04-14
2026
2026-01-01
2026
2026-01-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10433/26461
url https://hdl.handle.net/10433/26461
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial 4.0 International
http://creativecommons.org/licenses/by-nc/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial 4.0 International
http://creativecommons.org/licenses/by-nc/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:RIO. Repositorio Institucional Olavide
instname:Universidad Pablo de Olavide (UPO)
instname_str Universidad Pablo de Olavide (UPO)
reponame_str RIO. Repositorio Institucional Olavide
collection RIO. Repositorio Institucional Olavide
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,811543

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