Journal of Risk and Uncertainty

, Volume 23, Issue 2, pp 185–198 | Cite as

Probability Weighting in Choice under Risk: An Empirical Test

  • Han Bleichrodt


This paper reports a violation of rank-dependent utility with inverse S-shaped probability weighting for binary gambles. The paper starts with a violation of expected utility theory: one-stage gambles elicit systematically different utilities than theoretically equivalent two-stage gambles. This systematic disparity does not disappear, but becomes more pronounced after correction for inverse S-shaped probability weighting. The data are also inconsistent with configural weight theory and Machina's fanning out hypothesis. Possible explanations for the data are loss aversion and anchoring and insufficient adjustment.

nonexpected utility probability weighting health 


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Copyright information

© Kluwer Academic Publishers 2001

Authors and Affiliations

  • Han Bleichrodt
    • 1
  1. 1.iMTA/iBMGErasmus UniversityRotterdamThe Netherlands

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