Preference Reversals to Explain Ambiguity Aversion
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چکیده
Preference reversals are found in measurements of ambiguity aversion even under constant psychological and informational circumstances. The reversals are of a fundamentally different nature than the reversals found before because they cannot be explained by context-dependent weightings of attributes. We offer an explanation based on Sugden’s random-reference theory with different elicitation methods generating different reference points. Measurements using willingness to pay are confounded by loss aversion and overestimate ambiguity aversion.
منابع مشابه
Preference Reversals for Ambiguity Aversion
T paper finds preference reversals in measurements of ambiguity aversion, even if psychological and informational circumstances are kept constant. The reversals are of a fundamentally different nature than the reversals found before because they cannot be explained by context-dependent weightings of attributes. We offer an explanation based on Sugden’s random-reference theory, with different el...
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تاریخ انتشار 2008