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Dynamic Choice and Timing-Independence: an experimental investigation

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  • John Hey
  • Massimo Paradiso.

Abstract

Timing-independence implies that individuals are indifferent between a sequential choice problem and a planned choice problem which are strategically equivalent except for the timing of resolution of the uncertainty. This paper reports an experiment in which we investigate whether the timing of resolution of the uncertainty affects individual preferences. We elicit individual preferences for three strategically equivalent decisions problems. The experimental results suggest that timing- independence is an inappropriate assumption of individual preferences. The paper discusses possible implications of such findings.

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File URL: http://www.york.ac.uk/media/economics/documents/discussionpapers/1999/9926.pdf
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Bibliographic Info

Paper provided by Department of Economics, University of York in its series Discussion Papers with number 99/26.

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Handle: RePEc:yor:yorken:99/26

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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Fax: (0)1904 323759
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  16. Loewenstein, George & Adler, Daniel, 1995. "A Bias in the Prediction of Tastes," Economic Journal, Royal Economic Society, vol. 105(431), pages 929-37, July.
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  19. Ronald Harstad, 2000. "Dominant Strategy Adoption and Bidders' Experience with Pricing Rules," Experimental Economics, Springer, vol. 3(3), pages 261-280, December.
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Cited by:
  1. Nathalie Etchart-Vincent, 2002. "Adequate Moods for non-EU Decision Making in a Sequential Framework," Post-Print halshs-00004830, HAL.

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