Advanced Search
MyIDEAS: Login to save this paper or follow this series

A New Type of Preference Reversal

Contents:

Author Info

  • Han Bleichrodt

    ()
    (Erasmus University, Rotterdam)

  • Jose Luis Pinto-Prades

    ()
    (Department of Economics, Universidad Pablo de Olavide)

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.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.upo.es/serv/bib/wps/econ0618.pdf
File Function: First version, 2006
Download Restriction: no

Bibliographic Info

Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 06.18.

as in new window
Length: 33 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:pab:wpaper:06.18

Contact details of provider:
Postal: Carretera de Utrera km.1, 41013 Sevilla
Phone: + 34 954 34 8913
Fax: + 34 954 34 9339
Email:
Web page: http://www.upo.es/econ/
More information through EDIRC

Related research

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

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Loomes, Graham & Starmer, Chris & Sugden, Robert, 1992. "Are Preferences Monotonic? Testing Some Predictions of Regret Theory," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 59(233), pages 17-33, February.
  2. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, Econometric Society, vol. 47(2), pages 263-91, March.
  3. Tversky, Amos & Slovic, Paul & Kahneman, Daniel, 1990. "The Causes of Preference Reversal," American Economic Review, American Economic Association, American Economic Association, vol. 80(1), pages 204-17, March.
  4. Grether, David M & Plott, Charles R, 1982. "Economic Theory of Choice and the Preference Reversal Phenomenon: Reply," American Economic Review, American Economic Association, American Economic Association, vol. 72(3), pages 575, June.
  5. Handa, Jagdish, 1977. "Risk, Probabilities, and a New Theory of Cardinal Utility," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 85(1), pages 97-122, February.
  6. Grether, David M. & Plott, Charles R., . "Economic Theory of Choice and the Preference Reversal Phenomenon," Working Papers, California Institute of Technology, Division of the Humanities and Social Sciences 152, California Institute of Technology, Division of the Humanities and Social Sciences.
  7. Enrico Diecidue & Ulrich Schmidt & Peter P. Wakker, 2004. "The Utility of Gambling Reconsidered," Journal of Risk and Uncertainty, Springer, Springer, vol. 29(3), pages 241-259, December.
  8. Jonathan W. Leland, 1998. "Similarity Judgments in Choice Under Uncertainty: A Reinterpretation of the Predictions of Regret Theory," Management Science, INFORMS, INFORMS, vol. 44(5), pages 659-672, May.
  9. Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough Or Don'T Pay At All," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(3), pages 791-810, August.
  10. Birnbaum, Michael H. & Sutton, Sara E., 1992. "Scale convergence and utility measurement," Organizational Behavior and Human Decision Processes, Elsevier, Elsevier, vol. 52(2), pages 183-215, July.
  11. Loomes, Graham & Sugden, Robert, 1986. "Disappointment and Dynamic Consistency in Choice under Uncertainty," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 53(2), pages 271-82, April.
  12. Poterba, James M & Venti, Steven F & Wise, David A, 1998. "401(k) Plans and Future Patterns of Retirement Saving," American Economic Review, American Economic Association, American Economic Association, vol. 88(2), pages 179-84, May.
  13. Mellers, Barbara & Weiss, Robin & Birnbaum, Michael, 1992. " Violations of Dominance in Pricing Judgments," Journal of Risk and Uncertainty, Springer, Springer, vol. 5(1), pages 73-90, February.
  14. Quiggin, John, 1990. "Stochastic Dominance in Regret Theory," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 57(3), pages 503-11, July.
  15. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, University of Chicago Press, vol. 59(4), pages S251-78, October.
  16. Birnbaum, Michael H & Navarrete, Juan B, 1998. "Testing Descriptive Utility Theories: Violations of Stochastic Dominance and Cumulative Independence," Journal of Risk and Uncertainty, Springer, Springer, vol. 17(1), pages 49-78, October.
  17. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, American Economic Association, vol. 87(4), pages 746-55, September.
  18. Chris Starmer, 2000. "Developments in Non-expected Utility Theory: The Hunt for a Descriptive Theory of Choice under Risk," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 38(2), pages 332-382, June.
  19. Robin P. Cubitt & Alistair Munro & Chris Starmer, 2004. "Testing explanations of preference reversal," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(497), pages 709-726, 07.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pab:wpaper:06.18. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (PublicaciĆ³n Digital - UPO).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.