Flipping a coin: Theory and evidence

Nadja Dwenger, Dorothea Kübler and Georg Weizsäcker

Discussion Papers, Research Unit: Market Behavior from WZB Berlin Social Science Center

Abstract: We investigate the possibility that a decision-maker prefers to avoid making a decision and instead delegates it to an external device, e.g., a coin flip. In a series of experiments our participants often choose a stochastically dominated lottery between outcomes, contradicting most theories of choice such as expected utility. A large data set on university applications in Germany shows a choice pattern that is consistent with a preference for randomization, entailing substantial allocative consequences. The findings are consistent with our theory of responsibility aversion.

Keywords: Stochastic dominance violations; individual decision making; university choice; matching (search for similar items in EconPapers)
JEL-codes: D01 D03 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Flipping a Coin: Theory and Evidence (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:wzbmbh:spii2013201r

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