# Challenge Theory: The Structure and Measurement of Risky Binary Choice Behavior

@article{Shye2020ChallengeTT, title={Challenge Theory: The Structure and Measurement of Risky Binary Choice Behavior}, author={Samuel Shye and Ido Haber}, journal={arXiv: General Economics}, year={2020} }

Challenge Theory (Shye & Haber 2015; 2020) has demonstrated that a newly devised challenge index (CI) attributable to every binary choice problem predicts the popularity of the bold option, the one of lower probability to gain a higher monetary outcome (in a gain problem); and the one of higher probability to lose a lower monetary outcome (in a loss problem). In this paper we show how Facet Theory structures the choice-behavior concept-space and yields rationalized measurements of gambling… Expand

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