WP 2018-06 Eye-Tracking and Economic Theories of Choice Under Risk

Published in 2019 in Journal of the Economic Science Association, Volume 5, Issue 1.

AUTHORS: Glenn W. Harrison and J. Todd Swarthout

ABSTRACT: We examine the ability of eye movement data to help understand the determinants of decision-making over risky prospects. We start with structural models of choice under risk, and use that structure to inform what we identify from the use of process data in addition to choice data. We find that information on eye movements does significantly affect the extent and nature of probability weighting behavior. Our structural model allows us to show the pathway of the effect, rather than simply identifying a reduced form effect. This insight should be of importance for the normative design of choice mechanisms for risky products. We also show that decision-response duration is no substitute for the richer information provided by eye-tracking.