Extension of Small Decision-Making Problems

A "small decision-making" (SDM) [2] problem is very common in the real world; Decision makers (DMs) face the same choice problem many times in similar situations. Almost all the investigations about these questions focused on the subjects' payoffs, and DMs were likely to misestimate the payoff structure of binary choice in Barron and Erev [1]. We study this challenging problem via Takemi Fujikawa and Sobei H. Oda[2] 's Search-Assessment Model, which demonstrated that the probability of such misestimate is rather high. The problems in [1] can be easily tested by the Search-Assessment Model(SAM). In this paper we extend the SAM and explore SDM [2] problem in the situation that the DMs should estimate their losses not payoffs when they make decisions under risk. The methodologies are motivated and illustrated by a data example.