Decision Making under Uncertainty: An Experimental Study in Market Settings
Federico Echenique (),
Taisuke Imai and
Papers from arXiv.org
We implement nonparametric revealed-preference tests of subjective expected utility theory and its generalizations. We find that a majority of subjects' choices are consistent with the maximization of some utility function. They respond to price changes in the direction subjective expected utility theory predicts, but not to a degree that makes them consistent with the theory. Maxmin expected utility a dds no explanatory power. The degree of deviations from the theory is uncorrelated with demographic characteristics. Our findings are essentially the same in laboratory data with a student population and in a panel survey with a general sample of the U.S. population.
Date: 2019-11, Revised 2021-05
New Economics Papers: this item is included in nep-exp, nep-fle and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://arxiv.org/pdf/1911.00946 Latest version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:1911.00946
Access Statistics for this paper
More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().