A Missing Link in Behavioural Economics? A Portmanteau Experiment on the Relevance of Individual Decision Anomalies for Households

Alistair Munro and Danail Popov
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Danail Popov: Department of Economics, Royal Holloway University of London

No 09/10, Royal Holloway, University of London: Discussion Papers in Economics from Department of Economics, Royal Holloway University of London

Abstract: Although households are responsible for many important decisions, they have rarely been the subject of economics experiments. We conduct a series of linked and incentivized experiments on decision-making, designed to see if the anomalies typically found in individual choice experiments are found when the subjects are couples from long-term relationships. Specifically we investigate the endowment effect, the compromise effect, asymmetric dominance and the ‘more is less’ phenomena. Comparing the results with two control groups (students and non-student individuals) we find broadly the same pattern of anomalies in individuals as we do in couples. Thus behavioural patterns that appear in individual choices appear relevant for decisions made by established couples.

Keywords: Household choice; Experiment; Family; Anomalies; Endowment Effect; Compromise Effect; Asymmetric Dominance; ‘More is less’. (search for similar items in EconPapers)
JEL-codes: C92 D13 D80 (search for similar items in EconPapers)
Date: 2009-06
New Economics Papers: this item is included in nep-cbe, nep-evo, nep-exp and nep-soc
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