Description
Compare a stated certain value with a supplied expected lottery value.
Behavioral economic tasks use explicit payoff units, reference values, time periods and supplied utility or discount conventions. A decision weight need not be a probability, one branch term is not a full expectation, and a nominal cost difference does not establish perceived switching difficulty or an actual preference.
Compare a stated certain value with a supplied expected lottery value.
When to use this tool
Use Risk Choice Stated Certain Ratio when you already have statedCertainValue, expectedLotteryValue and need to compare a stated certain value with a supplied expected lottery value.
How to use the tool and how it works
- Enter statedCertainValue, expectedLotteryValue. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read certainToExpectedRatio. Use the output convention below.
Require expectedLotteryValue!=0; return statedCertainValue/expectedLotteryValue.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| statedCertainValue | Stated Certain Value | Required. Finite number. |
| expectedLotteryValue | Supplied nonzero signed expectation; not computed from outcomes by this tool. | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| certainToExpectedRatio | Certain To Expected Ratio | Required. Finite number. |
{
"input": {
"statedCertainValue": 40,
"expectedLotteryValue": 50
},
"output": {
"certainToExpectedRatio": 0.8
}
}Limitations and assumptions
- Signed values are accepted, so sign affects ratio interpretation. This does not compute the lottery expectation, estimate a certainty equivalent, risk preference or rationality.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Review the full task design, incentive and payoff definitions, participant records and statistical analysis. Estimate behavioral models from appropriate data when local supplied-value arithmetic cannot establish preferences or causal effects.
References
Similar or alternative tools
- Lottery Expected Payoff
Calculate a supplied finite lottery expected payoff.
- Lottery Branch Weighted Utility Term
Calculate one supplied lottery branch's expected-utility term.