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Which Error Story Is Best?

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  • Carbone, Enrica
  • Hey, John D

Abstract

Two recent papers, Harless and Camerer (1994) and Hey and Orme (1994) are both addressed to the same question: which is the "best" theory of decision making under risk? As an essential part of their separate approaches to an answer to this question, both sets of authors had to make an assumption about the underlying stochastic nature of their data. In this context this implied an assumption about the "errors" made by the subjects in the experiments generating the data under analysis. The two different sets of authors adopted different assumptions: the purpose of this current paper is to compare and contrast these two different error stories--in an attempt to discover which of the two is "best." Copyright 2000 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 20 (2000)
Issue (Month): 2 (March)
Pages: 161-76

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Handle: RePEc:kap:jrisku:v:20:y:2000:i:2:p:161-76

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Web page: http://www.springerlink.com/link.asp?id=100299

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