“Certain-uncertain” inconsistency within the basic experimental procedures of behavioral economics

Alexander Harin

MPRA Paper from University Library of Munich, Germany

Abstract: Old problems of the mathematical description of the economical behavior of a man are briefly reviewed. They are the comparison of choices of a man between uncertain and sure games and the radically different behavior of a man in different domains. The proposed solution of the problems consists in the purely mathematical method and models and is briefly reviewed in the Appendix. In the present paper the main attention is paid to the analysis of the experimental support of this possible solution. The generally accepted random incentive experimental procedures are discussed. A “certain-uncertain” inconsistency between the certain type of the choices and the uncertain type of the incentives is revealed and analyzed.

Keywords: utility; prospect theory; experiment; incentive; random-lottery incentive system; Prelec; probability weighting function (search for similar items in EconPapers)
JEL-codes: C1 C9 D8 D81 (search for similar items in EconPapers)
Date: 2024-08-17
New Economics Papers: this item is included in nep-exp and nep-upt
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