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A New Type of Preference Reversal

Author

Listed:
  • 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.

Suggested Citation

  • Han Bleichrodt & Jose Luis Pinto-Prades, 2006. "A New Type of Preference Reversal," Working Papers 06.18, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:06.18
    as

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    File URL: http://www.upo.es/serv/bib/wps/econ0618.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Preference reversal; Choice behavior; Stochastic dominance; Disappointment and elation; Health;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General

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    This paper has been announced in the following NEP Reports:

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