An Experimental Investigation of Alternatives to Expected Utility Using Pricing Data

Arbeitspapier

Experimental research on decision making under risk has until now always employed choice data in order to evaluate the empirical performance of expected utility and the alternative nonexpected utility theories. The present paper performs a similar analysis which relies on pricing data instead of choice data. Since pricing data lead in many cases to a different ordering of lotteries than choices (e.g. the preference reversal phenomenon) our analysis may have fundamental different results than preceding investigations. We elicit three different types of pricing data: willingness-to-pay, willingness-to-accept and certainty equivalents under the Becker-DeGroot-Marschak (BDM) incentive mechanism. One of our main result shows that the comparative performance of the single theories differs significantly under these three types of pricing data.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economics Working Paper ; No. 2006-08

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; Design of Experiments: Laboratory, Individual
• Thema: expected utility ; non-expected utility ; experiments ; WTP ; WTA ; BDM ; Erwartungsnutzen ; Entscheidung bei Risiko ; Experiment ; Willingness to pay ; Verhaltensökonomik ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Morone, Andrea ; Schmidt, Ulrich
• Ereignis: Veröffentlichung
• (wer): Kiel University, Department of Economics
• (wo): Kiel
• (wann): 2006

Weitere Informationen

• Handle: http://hdl.handle.net/10419/22013
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ