Which Error Story is Best?

Enrica Carbone and John Hey

Chapter 16 in Experiments in Economics:Decision Making and Markets, 2018, pp 365-380 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Two recent papers, Harless and Camerer(1994) and Hey and Orme(1994) are both addressed to the same question: which is the ‘best’ theory of decision making under risk? As an essential part of their separate approaches to an answer to this question, both sets of authors had to make an assumption about the underlying stochastic nature of their data. In this context this implied an assumption about the ‘errors’ made by the subjects in the experiments generating the data under analysis. The two different sets of authors adopted different assumptions: the purpose of this current paper is to compare and contrast these two different error stories — in an attempt to discover which of the two is ‘best’.

Keywords: Experimental Economics; Risk; Ambiguity; Markets; Auctions; Bargaining; Econometrics; Methodology (search for similar items in EconPapers)
JEL-codes: C90 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813235816_0016 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813235816_0016 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Which Error Story Is Best? (2000)
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:wsi:wschap:9789813235816_0016

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().