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Preference reversals and the analysis of income distributions

  • Yoram Amiel
  • Frank Cowell

    ()

  • Liema Davidovitz
  • Avraham Polovin

It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the parallel social-choice situation. Here decisions are to be made between a distribution with a small group of very high-income people. Results from a number of experimental designs are analysed.

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File URL: http://hdl.handle.net/10.1007/s00355-007-0234-3
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Article provided by Springer & The Society for Social Choice and Welfare in its journal Social Choice and Welfare.

Volume (Year): 30 (2008)
Issue (Month): 2 (February)
Pages: 305-330

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Handle: RePEc:spr:sochwe:v:30:y:2008:i:2:p:305-330
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  17. Manfred NERMUTH, 1992. "Different Economic Theories with the Same Formal Structure: Risk, Income Inequality, Information Structures," Vienna Economics Papers vie9207, University of Vienna, Department of Economics.
  18. John C. Harsanyi, 1955. "Cardinal Welfare, Individualistic Ethics, and Interpersonal Comparisons of Utility," Journal of Political Economy, University of Chicago Press, vol. 63, pages 309.
  19. Johnson, Eric J. & Payne, John W. & Bettman, James R., 1988. "Information displays and preference reversals," Organizational Behavior and Human Decision Processes, Elsevier, vol. 42(1), pages 1-21, August.
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