The relevance of irrelevant alternatives

Eike Kroll and Bodo Vogt

Economics Letters, 2012, vol. 115, issue 3, 435-437

Abstract: In an experimental setting, subjects face a standard elicitation task for certainty equivalents. We show that when a third, objectively irrelevant, option is added to the standard task, the willingness to take risks increases.

Keywords: Decision under risk; Expected utility theory; Irrelevant alternative; Lottery choice (search for similar items in EconPapers)
JEL-codes: C9 D80 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:115:y:2012:i:3:p:435-437

DOI: 10.1016/j.econlet.2011.12.124

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