EconPapers    
Economics at your fingertips  
 

Consistent inconsistencies? Evidence from decision under risk

Guillaume Hollard, Hela Maafi and Jean-Christophe Vergnaud ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Conventional economic theory assumes that agents should be consistent across decisions. However, it is often observed that experimental subjects fail to report consistent preferences. So far, these inconsistencies are almost always examined singly. We thus wonder whether the more inconsistent individuals in one task are also more inconsistent in other tasks. We propose an experiment in which subjects are asked to report their preferences over risky bets so as to obtain, for each subject, three measures of inconsistencies: classical preference reversals, framing effects and preference instability. In line with previous experimental findings, subjects are largely inconsistent according to each of these three measures and there are considerable individual differences. The main result is that we find no correlation among these three measures of inconsistency.

Keywords: Heterogeneity; Consistency; Preference reversals; Framing effects (search for similar items in EconPapers)
Date: 2016-04
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01306250
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Theory and Decision, Springer Verlag, 2016, 80 (4), pp.623-648. ⟨10.1007/s11238-015-9518-8⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Consistent inconsistencies? Evidence from decision under risk (2016) Downloads
Working Paper: Consistent inconsistencies? Evidence from decision under risk (2016)
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:hal:cesptp:hal-01306250

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2019-11-02
Handle: RePEc:hal:cesptp:hal-01306250