Journal of risk and uncertainty, 2014-12, Vol.49 (3), p.189-211
2014
Details
- Autor(en) / Beteiligte
- Titel
- Testing for independence while allowing for probabilistic choice
- Ist Teil von
- Journal of risk and uncertainty, 2014-12, Vol.49 (3), p.189-211
- Ort / Verlag
- Boston: Springer Science+Business Media
- Erscheinungsjahr
- 2014
- Link zum Volltext
- Quelle
- Business Source Ultimate
- Beschreibungen/Notizen
- We propose a broad framework for individual choice under risk which can accommodate many stochastic formulations of various deterministic theories. Using this framework to guide an experimental design, we show that most individuals' departures from the independence axiom cannot be explained by adding a 'random noise' term to a deterministic 'core' theory which incorporates this axiom. We also find behaviour that cannot be explained in terms of the standard assumptions of Cumulative Prospect Theory, often invoked to account for violations of independence. Our results suggest that 'similarity' effects may explain the data better.
- Sprache
- Englisch
- Identifikatoren
- ISSN: 0895-5646eISSN: 1573-0476DOI: 10.1007/s11166-014-9205-0Titel-ID: cdi_proquest_miscellaneous_1648073920
- Format
- –
- Schlagworte
- Ambivalence, Decision making, Decision making models, Decision theory, Determinism, Economic behaviour, Economic theory, Economic Theory/Quantitative Economics/Mathematical Methods, Economic uncertainty, Economics, Economics and Finance, Environmental Economics, Expected utility, Experiment design, Experimental methods, Experiments, Lotteries, Microeconomics, Operations Research/Decision Theory, Point estimators, Probabilistic modeling, Probability distribution, Probability distributions, Prospect theory, Risk exposure, Risk theory, Stochastic processes, Studies, Uncertainty