EconPapers    
Economics at your fingertips  
 

Strength of preference and decisions under risk

Carlos Alós-Ferrer () and Michele Garagnani ()
Additional contact information
Carlos Alós-Ferrer: University of Zurich

Journal of Risk and Uncertainty, 2022, vol. 64, issue 3, No 4, 309-329

Abstract: Abstract Influential economic approaches as random utility models assume a monotonic relation between choice frequencies and “strength of preference,” in line with widespread evidence from the cognitive sciences, which also document an inverse relation to response times. However, for economic decisions under risk, these effects are largely untested, because models used to fit data assume them. Further, the dimension underlying strength of preference remains unclear in economics, with candidates including payoff-irrelevant numerical magnitudes. We provide a systematic, out-of-sample empirical validation of these relations (both for choices and response times) relying on both a new experimental design and simulations.

Keywords: Stochastic choice; Strength of preference; Decision errors; Risk attitude; D01; D81; D91 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11166-022-09381-0 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Strength of preference and decisions under risk (2022) Downloads
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:kap:jrisku:v:64:y:2022:i:3:d:10.1007_s11166-022-09381-0

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11166/PS2

DOI: 10.1007/s11166-022-09381-0

Access Statistics for this article

Journal of Risk and Uncertainty is currently edited by W. Kip Viscusi

More articles in Journal of Risk and Uncertainty from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-12-17
Handle: RePEc:kap:jrisku:v:64:y:2022:i:3:d:10.1007_s11166-022-09381-0