EE Seminar #11: Colm Connaughton – Heuristic decision models of the Copenhagen experiment

Behavioural experiments by Ollie Hulme’s group in Copenhagen show that people change their implied risk preferences when choosing between repeated multiplicative versus additive gambles. The shifts are consistent with a model assuming that the subjects intend to maximise the time averaged growth rate of wealth, however, such model is not cognitively realistic.

In this talk, Colm Connaughton (LML) will present Lay Len Ching’s recent work exploring the extent to which a class of heuristic decision models known as fast-and-frugal trees can be trained to play the Copenhagen experiment. The findings suggest that simple heuristics may provide a cognitively plausible model for how people adapt to the changing risk dynamics in the experiment.

This talk can be thought of as a follow-on from Özgür Şimşek’s seminar on the design of fast-and-frugal trees. Read more about the Copenhagen experiment here.

This is an online event. We look forward to seeing you there!

This seminar is a part of the Ergodicity Economics Seminar Series. To receive invitations to future seminars sign up to our mailing list.