Axiom of Monotonicity: An Experimental Test

Tridib Sharma and Radovan Vadovic ()

MPRA Paper from University Library of Munich, Germany

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: C72 C91 D81 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-exp and nep-upt
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https://mpra.ub.uni-muenchen.de/22863/1/MPRA_paper_22863.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/33178/2/MPRA_paper_33178.pdf revised version (application/pdf)

Related works:
Working Paper: Axiom of Monotonicity: An Experimental Test (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:22863

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