| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059624 | Economics Letters | 2013 | 5 Pages |
Abstract
A new laboratory experiment is designed to identify the best theories for describing decisions under risk. The experimental design has two noteworthy features: a representative sample of binary choice problems (for fair comparison across theories) and a lottery set with a small number of outcomes and probabilities (for ease of non-parametric estimation). We find that a simple heuristic, rank-dependent utility and expected utility theory provide the best goodness of fit.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Pavlo Blavatskyy,