EconPapers    
Economics at your fingertips  
 

Imprecision as an Account of the Preference Reversal Phenomenon

David Butler and Graham Loomes ()

American Economic Review, 2007, vol. 97, issue 1, 277-297

Abstract: Many individuals' choices and valuations involve a degree of uncertainty/imprecision. This paper reports an experiment designed to obtain some measure of imprecision and to examine the extent to which it can explain preference reversals of two opposite forms, one of which appears not to have been reported previously. The model of imprecision we examine not only predicts both patterns but also provides an account of earlier results that are otherwise not well explained. The results suggest that any successful descriptive theory of choice and valuation will need to allow in some way for the imprecision surrounding people's decisions. (JEL C91, D11, D81)

Date: 2007
Note: DOI: 10.1257/aer.97.1.277
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (136)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.97.1.277 (application/pdf)
http://www.aeaweb.org/aer/data/mar07/20050175_data.zip (application/zip)
http://www.aeaweb.org/aer/data/mar07/20050175_app.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:97:y:2007:i:1:p:277-297

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

 
Page updated 2025-03-19
Handle: RePEc:aea:aecrev:v:97:y:2007:i:1:p:277-297