Reducing the Reluctance to Exchange Gambles

Michal Maimaran ()

Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem

Abstract: Bar-Hillel and Neter (1996) found that although people are willing to trade identical objects, they are reluctant to trade identical lottery tickets. Is this simply due to the fact that these are gambles? It was found that if the value of the tickets is guaranteed to be ex-post, not just ex ante, identical, people are more willing to exchange them. Indeed, just the possibility of ex-post difference between the lottery tickets induces as much reluctance to exchange them as when ex-post difference is guaranteed. In addition, this study examines how the vividness of lottery tickets influences the willingness to trade them. Specifically, it examines whether people are equally reluctant to exchange lottery tickets (when given a bonus for doing so) when they cannot even distinguish between them (e.g., when the tickets are concealed in envelopes). When one cannot see the ticket, it is less vivid and it is harder to imagine it winning. Indeed, it was found that people are more willing to exchange when they cannot distinguish between the tickets than when they can.

Pages: 10 pages
Date: 2003-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Judgment and Decision Making, 6(2), 147-155

Downloads: (external link)
http://ratio.huji.ac.il/sites/default/files/publications/dp341.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://ratio.huji.ac.il/sites/default/files/publications/dp341.pdf [302 Moved Temporarily]--> https://ratio.huji.ac.il/sites/default/files/publications/dp341.pdf)
http://journal.sjdm.org/11/06140/jdm06140.pdf (application/pdf)

Related works:
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:huj:dispap:dp341

Access Statistics for this paper

More papers in Discussion Paper Series from The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem Contact information at EDIRC.
Bibliographic data for series maintained by Michael Simkin ().