Article 2

Article 2

This article was published by American Economic Review in 2008. The article is focused on and assessed the risky choices that are made by contestants in one of the famous television game show “Deal or No Deal” and associated experiments in classroom. It argues against the customary concept of “expected utility theory”, and says that largely the choices are associated to the preceding results practiced throughout the entertainment. However, “risk aversion” reduces following historic prospects that have been devastated by adverse results or exceeds by positive outcomes.

A number of theories related to risky choices have been created, including ...