Saurabh Bedi

@saurabhbedi.bsky.social

PhD student in Neuroeconomics, University of Zurich | https://saurabh9729.github.io/saurabhbedi/

📢 Preprint out! biorxiv.org/content/10.1... What gives rise to probability weighting, a cornerstone of Prospect Theory? We show it comes from the natural boundedness of probabilities + cognitive noise. Adding boundaries adds multiple distortions, across risky choice & perception.

Probability weighting arises from boundary repulsions of cognitive noise

In both risky choice and perception, people overweight small and underweight large probabilities. While prospect theory models this with a probability weighting function, and Bayesian noisy coding mod...

biorxiv.org