The relationship between risk attitudes and heuristics in search tasks: A laboratory experiment
Daniel Schunk and
Joachim Winter ()
Journal of Economic Behavior & Organization, 2009, vol. 71, issue 2, 347-360
Abstract:
Experimental studies of search behavior suggest that individuals stop searching earlier than the optimal, risk-neutral stopping rule predicts. Two different classes of decision rules could generate this behavior: rules that are optimal conditional on utility functions departing from risk neutrality, or heuristics derived from limited cognitive processing capacities and satisficing. To discriminate between these possibilities, we conducted an experiment that consists of a search task as well as a lottery task designed to elicit utility functions. We find that search heuristics are not related to measures of risk aversion, but to measures of loss aversion.
Keywords: Search; Heuristics; Utility; function; elicitation; Risk; attitudes; Prospect; theory (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-2681(09)00109-7
Full text for ScienceDirect subscribers only
Related works:
Working Paper: The relationship between risk attitudes and heuristics in search tasks: A laboratory experiment (2009)
Working Paper: The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment (2007) 
Working Paper: The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment (2005) 
Working Paper: The relationship between risk attitudes and heuristics in search tasks: a laboratory experiment (2004) 
Working Paper: The Relationship Between Risk Attitudes and Heuristics in Search Tasks: A Laboratory Experiment (2004) 
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:eee:jeborg:v:71:y:2009:i:2:p:347-360
Access Statistics for this article
Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.
More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().