The relevance of irrelevant alternatives
AbstractIn an experimental setting, subjects face a standard elicitation task for certainty equivalents. We show that when a third, objectively irrelevant, option is added to the standard task, the willingness to take risks increases.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 115 (2012)
Issue (Month): 3 ()
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Web page: http://www.elsevier.com/locate/ecolet
Decision under risk; Expected utility theory; Irrelevant alternative; Lottery choice;
Find related papers by JEL classification:
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
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