Behavioral Patterns and Reduction of Sub-Optimality: An Experimental Choice Analysis

Daniela Di Cagno, Arianna Galliera, Werner Güth () and Noemi Pace
Additional contact information
Werner Güth: LUISS, Rome and Max Planck Institute, Bonn

No 2017:23, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper attempts to identify behavioral patterns and compare their average success considering several criteria of bounded rationality. Experimentally observed choice behavior in various decision tasks is used to assess heterogeneity in how individual participants respond to 15 randomly ordered portfolio choices, each of which is experienced twice. Treatments differ in (not) granting probability information and in (not) eliciting aspirations. Since in our setting neither other regarding concerns nor risk attitude matter and probability of the binary chance move is (optimal) choice-irrelevant, categorizing decision types relies on parameter dependence and choice adaptations. We find that most participants reduce systematically sub-optimality when following the identified criteria.

Keywords: (Un)Bounded Rationality; Satisficing; Experiments; Heterogeneity (search for similar items in EconPapers)
JEL-codes: C91 D03 D81 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2017
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Behavioral patterns and reduction of sub-optimality: an experimental choice analysis (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2017:23

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