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A New Type of Preference Reversal

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Author Info
Han Bleichrodt () (Erasmus University, Rotterdam)
Jose Luis Pinto-Prades () (Department of Economics, Universidad Pablo de Olavide)

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Abstract

The classic preference reversal phenomenon arises in a comparison between a choice and a matching task. We present a new type of preference reversal which is entirely choice-based. Because choice is the basic primitive of economics, the preference reversal we observe is more troubling for economics. The preference reversal was observed in two experiments, both involving large representative samples from the Spanish population. The data were collected by professional interviewers in face-to-face interviews. Possible explanations for the preference reversal are the anticipation of disappointment and elation in risky choice and the impact of ethical considerations.

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File URL: http://www.upo.es/serv/bib/wps/econ0618.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Universidad Pablo de Olavide, Departamento de Economía in its series Working Papers with number 06.18.

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Length: 33 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:pab:wpaper:06.18

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Related research
Keywords: Preference reversal Choice behavior Stochastic dominance Disappointment and elation Health

Find related papers by JEL classification:
I10 - Health, Education, and Welfare - - Health - - - General

This paper has been announced in the following NEP Reports:

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  13. Handa, Jagdish, 1977. "Risk, Probabilities, and a New Theory of Cardinal Utility," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 97-122, February. [Downloadable!] (restricted)
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