{"pk":27183,"title":"Asymmetric detection of changes in volatility:\nImplications for risk perception","subtitle":null,"abstract":"Variance of the outcomes associated with an option often\nprovides a measure of the riskiness of that option. Hence, it is\nimportant for organisms are able to detect any sudden changes\nin outcome variance. In Experiment 1, we presented people\nwith graphs of share price time series or water level time\nseries. In half the graphs, variance (financial or flooding risk)\nchanged at some point. People were better at detecting\nincreases than decreases in risk - maybe because it is more\nimportant to detect increases in danger than decreases in it.\nHowever, in Experiment 2, people were still better at\ndetecting increases than decreases in variance even when\nthose changes did not reflect altered levels of risk. Our\nfindings may reflect the fact that the actual change in variance\nexceeds the change needed to identify a regime change in\nvariance by a larger amount for upward than for downward\nchanges.","language":"eng","license":{"name":"","short_name":"","text":null,"url":""},"keywords":[{"word":"volatility; variance; risk; change detection;\njudgment"}],"section":"Posters: Papers","is_remote":true,"remote_url":"https://escholarship.org/uc/item/6f9665wc","frozenauthors":[{"first_name":"Nigel","middle_name":"","last_name":"Harvey","name_suffix":"","institution":"University College London","department":""},{"first_name":"Matt","middle_name":"","last_name":"Twyman","name_suffix":"","institution":"University College London","department":""},{"first_name":"Maarten","middle_name":"","last_name":"Speekenbrink","name_suffix":"","institution":"University College London","department":""}],"date_submitted":null,"date_accepted":null,"date_published":"2017-01-01T18:00:00Z","render_galley":null,"galleys":[{"label":"PDF","type":"pdf","path":"https://journalpub.escholarship.org/cognitivesciencesociety/article/27183/galley/16819/download/"}]}