Framing, Risk Preferences, and Fisheries Management

This set of vocabulary flashcards covers framing effects in decision-making, prospect theory, and management problems like capital stuffing in the Bristol Bay Salmon Fishery.

Framing

A concept in public policy experiments illustrating how the presentation of choices affects decision-making outcomes.

Program A (Asian Disease)

An option in the disease outbreak case where exactly $200$ people will be saved out of $600$.

Program B (Asian Disease)

An option in the disease outbreak case where there is a $\frac{1}{3}$ probability that all $600$ people will be saved and a $\frac{2}{3}$ probability that no one will be saved.

Program C (Asian Disease)

An option in the disease outbreak case where exactly $400$ people will die out of $600$.

Program D (Asian Disease)

An option in the disease outbreak case where there is a $\frac{1}{3}$ probability that no one will die, and a $\frac{2}{3}$ probability that all $600$ will die.

Gains Risk Preference Option

A choice between a $50\%$ chance of receiving $\$0$ and a $50\%$ chance of receiving $\$100$, or a $100\%$ chance of receiving $\$50$.

Losses Risk Preference Option

A choice between a $50\%$ chance of losing $\$0$ and a $50\%$ chance of losing $\$100$, or a $100\%$ chance of losing $\$50$.

Prospect Theory

A theory associated with the overweighting of low probability events and changes in risk preferences.

Amos Tversky and Daniel Kahneman

Researchers known for their work on risk preferences; Kahneman won the $2002$ Nobel Memorial Prize in Economics.

Race for Fish (Derby fishing)

An issue in Alaska’s Bristol Bay Salmon Fishery where fishermen get in each other’s way competing for the best place to catch fish.

Capital Stuffing

A practice where fishermen build wider and taller boats to circumvent a $32\text{'}$ length restriction, increasing costs without increasing total catches.