Axiom of Monotonicity: An Experimental Test

Tridib Sharma and Radovan Vadovic ()

No 1003, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: The Axiom of Monotonicity (AM) is a necessary condition for a number of expected utility representations, including those obtained by de Finetti (1930), von Neumann and Morgenstern (1944) and Savage (1954). The paper reports on experiments that directly test AM by eliminating strategic uncertainty, context, and peer effects. In this sterile and simple environment we do not observe AM violations under uncertainty but we do observe violations under ambiguity.

Keywords: Monotonicity; Dominance; Disjunction Effect; Sure THing Principle (search for similar items in EconPapers)
JEL-codes: C7 C9 D9 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2010, Revised 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ftp.itam.mx/pub/academico/inves/vadovic/10-03.pdf Revised version, 2011 (application/pdf)

Related works:
Working Paper: Axiom of Monotonicity: An Experimental Test (2010)
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:cie:wpaper:1003

Access Statistics for this paper

More papers in Working Papers from Centro de Investigacion Economica, ITAM Contact information at EDIRC.
Bibliographic data for series maintained by Diego Dominguez ().