The Complexity Effects on Choice with Uncertainty – Experimental Evidence
Datos Bibliográficos
| ID | 9706488 |
|---|---|
| Autores | Doron Sonsino (0000-0002-0593-561X, Technion – Israel Institute of Technology), Uri Benzion (Technion – Israel Institute of Technology), Uri Ben‐Zion (Technion – Israel Institute of Technology), Galit Mador (Technion – Israel Institute of Technology) |
| Año | 2002 |
| Volumen | 112 |
| Número | 482 |
| Páginas | 936-965 |
| Fecha de publicación | 2002-10-01 |
| Peer Reviewed | Sí |
| Open Access | Sí |
| Tipo | ARTICLE |
| Revista | The Economic Journal (JOURNAL) |
| Identificadores de la revista | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Editorial | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00073 |
| OpenAlex | W2115221635 |
| Idioma | EN |
| Citas recibidas | 11 |
| Referencias citadas | 38 |
We present experimental evidence suggesting that human subjects dislike complexity in choice with uncertainty. Our results suggest that the probability of choosing a given alternative decreases with the relative complexity of that alternative. Complexity increases the noise in the choice process and the chances that the (otherwise) inferior alternative will be selected. Our results contradict the predictions of (discounted) expected utility theory and intuitively appealing axioms like "stochastic dominance" and "convexity". These "complexity effects" may lead to inefficient portfolio selection. The perceived complexity of a given lottery may depend on editing procedures and be subjected to framing effects. Copyright Royal Economic Society 2002
Axiom · Convexity · Econometrics · Economics · Expected utility hypothesis · Financial economics · Framing effect · Lottery · Mathematical economics · Microeconomics · Portfolio · Stochastic dominance · Decision-Making and Behavioral Economics · Economic and Environmental Valuation · Forecasting Techniques and Applications · Mathematics · Psychology · Social Psychology
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| Obras citantes distintas | 11 |
|---|---|
| Citas por año | 0,79 |
| Intervalo de citas | 2012 - 2026 (15) |
| Velocidad de citación | current |
| Altamente citado | No |
| Tipos de cita | Neutras: 11 |