A RELATIVE RATIO MODEL FOR THE INTEGRATION OF GAINS AND LOSSES IN A MIXED REGULAR ROULETTE-TYPE GAME
AbstractDifferential effects of gains and losses are often obscured by lack of suitable measurement ona common unit scale, with either known or unknown common zero. Through a mixed gamesituation, in which participants were required to combine informers pertaining to both lossesand gains, an integration model was established and used as a basis for the estimation offunctional parameters. Differently from the additive combination of the weighted utility of thetwo prospects, a relative ratio rule was found instead. This rule suggests that subjectsconceive of the task as a competition between two opposite responses, expressing throughtheir judgments the compromise at which they arrive between them.