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Dissecting The Monty Hall Anomaly

Author

Listed:
  • Duncan James
  • Daniel Friedman
  • Christina Louie
  • Taylor O'Meara

Abstract

We assess competing explanations of irrational behavior in the Monty Hall problem by creating new variants of the problem. Some variants employ a feature that automates the merging of probabilities, thus rendering transparent the probabilistic advantage of the rational choice. That feature also enables systematic variation in informational asymmetry, and in ordering of actions. Data from 77 subjects, each of whom makes 30 binary decisions, indicate that automated merging raises the fraction of rational choices from around 40% to over 80%. Other features examined have much less impact, indicating the importance of a Bayesian updating failure. (JEL C91, D02, D81, D83)

Suggested Citation

  • Duncan James & Daniel Friedman & Christina Louie & Taylor O'Meara, 2018. "Dissecting The Monty Hall Anomaly," Economic Inquiry, Western Economic Association International, vol. 56(3), pages 1817-1826, July.
    • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:3:p:1817-1826
    DOI: 10.1111/ecin.12533
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    References listed on IDEAS

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    4. Camerer, Colin F. & Weber, Roberto A., 1999. "The econometrics and behavioral economics of escalation of commitment: a re-examination of Staw and Hoang's NBA data," Journal of Economic Behavior & Organization, Elsevier, vol. 39(1), pages 59-82, May.
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    Cited by:

    1. Esponda, Ignacio & Vespa, Emanuel & Yuksel, Sevgi, 2024. "Mental Models and Learning: The Case of Base-Rate Neglect," University of California at San Diego, Economics Working Paper Series qt8cb387t8, Department of Economics, UC San Diego.
    2. Duarte Gonc{c}alves & Jonathan Libgober & Jack Willis, 2021. "Retractions: Updating from Complex Information," Papers 2106.11433, arXiv.org, revised Jun 2024.

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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