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Eye-tracking and economic theories of choice under risk

  • Glenn W. Harrison
  • J. Todd SwarthoutEmail author
Original Paper

Abstract

We examine the ability of eye movement data to help understand the determinants of decision-making over risky prospects. We start with structural models of choice under risk, and use that structure to inform what we identify from the use of process data in addition to choice data. We find that information on eye movements does significantly affect the extent and nature of probability weighting behavior. Our structural model allows us to show the pathway of the effect, rather than simply identifying a reduced form effect. This insight should be of importance for the normative design of choice mechanisms for risky products. We also show that decision-response duration is no substitute for the richer information provided by eye-tracking.

Keywords

Risk Individual decision making Choice Visual attention Eye tracking Experiment 

JEL Classification

D81 D83 C91 

Notes

Acknowledgements

We are grateful to two references and a Guest Editor for helpful comments.

Supplementary material

40881_2019_63_MOESM1_ESM.pdf (677 kb)
Supplementary material 1 (PDF 677 kb)

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Copyright information

© Economic Science Association 2019

Authors and Affiliations

  1. 1.Department of Risk Management and Insurance and Center for the Economic Analysis of Risk, Robinson College of BusinessGeorgia State UniversityAtlantaUSA
  2. 2.Department of Economics and Experimental Economics Center, Andrew Young School of Policy StudiesGeorgia State UniversityAtlantaUSA
  3. 3.School of EconomicsUniversity of Cape TownCape TownSouth Africa

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