Description
Return a sure-option premium and reference-scaled value.
Behavioral-economics tasks compare supplied payoffs, reference points, budgets and observed choices. A gap, dominance flag or response fraction illustrates a declared convention without identifying a psychological bias, predicting real choices or selecting a suitable financial action.
Return a sure-option premium and reference-scaled value.
When to use this tool
Use Sure Option Premium when checking the stated experimental payoff, budget, reference or choice convention.
How to use the tool and how it works
- Enter sureValue, expectedAlternativeValue, referenceValue. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read premium, relativePremium, relativeDefined. Inspect relativeDefined before interpreting the associated values.
Return a sure-option premium and reference-scaled value. premium = sureValue-expectedAlternativeValue, relativePremium divides by nonzero referenceValue or is zero with relativeDefined false.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| sureValue | Sure Value | Required. Finite number. |
| expectedAlternativeValue | Expected Alternative Value | Required. Finite number. |
| referenceValue | Reference Value | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| premium | Premium | Required. Finite number. |
| relativePremium | Signed premium/referenceValue, zero placeholder if relativeDefined=false. | Required. Finite number. |
| relativeDefined | Relative Defined | Required. Boolean. |
{
"input": {
"sureValue": 55,
"expectedAlternativeValue": 50,
"referenceValue": 100
},
"output": {
"premium": 5,
"relativePremium": 0.05,
"relativeDefined": true
}
}Limitations and assumptions
- The expected alternative is supplied, not computed; no risk preference, choice prediction or appropriate financial decision is inferred.
- 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
Use a well-defined study design and complete data to estimate behavior; assess real financial rights, consequences and uncertainty independently.
References
Similar or alternative tools
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