Testing Expected Utility in the Presence of Errors
Bibliographic Data
| ID | 9704488 |
|---|---|
| Authors | Ulrich Schmidt (0000-0002-4812-3312, University of Kiel), Tibor Neugebauer (0000-0002-1183-7979, University of Hannover) |
| Year | 2007 |
| Volume | 117 |
| Issue | 518 |
| Pages | 470-485 |
| Publication date | 2007-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.1468-0297.2007.02026.x |
| OpenAlex | W2054591476 |
| Language | EN |
| Citations received | 1 |
| References cited | 13 |
One possible conclusion from recent experimental research on decision making under risk is that observed behaviour can be reasonably accommodated by expected utility plus an error term. This conclusion implies that the violation rate of expected utility should decrease if errors are excluded. This article reports on an experiment which investigates this implication by presenting the same choice problems to subjects three times. The results show that the exclusion of errors leads to a significant reduction of the violation rate for most of the cases. This observation can be regarded as supporting evidence for expected utility plus error term. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007
Actuarial science · Econometrics · Economics · Expected utility hypothesis · Mathematical economics · Physics · Statistics · Subjective expected utility · Systematic error · Term (time · Decision-Making and Behavioral Economics · Economic and Environmental Valuation · Health Systems, Economic Evaluations, Quality of Life · Mathematics
Investigating Generalizations of Expected Utility Theory Using Experimental Data
Le Comportement de l'Homme Rationnel devant le Risque
Violations of the betweenness axiom and nonlinearity in probability
Developments in Non-Expected Utility Theory
Testing Different Stochastic Specificationsof Risky Choice
Decisions, Error and Heterogeneity
| Unique citing works | 1 |
|---|---|
| Citations per year | 0,06 |
| Citation span | 2009 - 2009 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |