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A Missing Link in Behavioural Economics? A Portmanteau Experiment on the Relevance of Individual Decision Anomalies for Households

Author

Listed:
  • Alistair Munro

    (National Graduate Institute for Policy Studies, Tokyo, Japan)

  • Danail Popov

    (Department of Economics, Royal Holloway University of London)

Abstract

Although households are responsible for many important decisions, they have rarely been the subject of economics experiments. We conduct a series of linked and incentivized experiments on decision-making, designed to see if the anomalies typically found in individual choice experiments are found when the subjects are couples from long-term relationships. Specifically we investigate the endowment effect, the compromise effect, asymmetric dominance and the ‘more is less’ phenomena. Comparing the results with two control groups (students and non-student individuals) we find broadly the same pattern of anomalies in individuals as we do in couples. Thus behavioural patterns that appear in individual choices appear relevant for decisions made by established couples.

Suggested Citation

  • Alistair Munro & Danail Popov, 2009. "A Missing Link in Behavioural Economics? A Portmanteau Experiment on the Relevance of Individual Decision Anomalies for Households," Royal Holloway, University of London: Discussion Papers in Economics 09/10, Department of Economics, Royal Holloway University of London.
    • Handle: RePEc:hol:holodi:0910
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    More about this item

    Keywords

    Household choice; Experiment; Family; Anomalies; Endowment Effect; Compromise Effect; Asymmetric Dominance; ‘More is less’.;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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