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A portmanteau experiment on the relevance of individual decision anomalies for households

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  • Alistair Munro
  • Danail Popov

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. Copyright Economic Science Association 2013

Suggested Citation

  • Alistair Munro & Danail Popov, 2013. "A portmanteau experiment on the relevance of individual decision anomalies for households," Experimental Economics, Springer;Economic Science Association, vol. 16(3), pages 335-348, September.
  • Handle: RePEc:kap:expeco:v:16:y:2013:i:3:p:335-348
    DOI: 10.1007/s10683-012-9340-x
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    References listed on IDEAS

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    2. Mohammed Abdellaoui & Olivier l’Haridon & Corina Paraschiv, 2013. "Individual vs. couple behavior: an experimental investigation of risk preferences," Theory and Decision, Springer, vol. 75(2), pages 175-191, August.
    3. Boto-García, David & Mariel, Petr & Baños-Pino, José Francisco, 2023. "Intra-household bargaining for a joint vacation," Journal of choice modelling, Elsevier, vol. 47(C).
    4. Marcel Lichters & Paul Bengart & Marko Sarstedt & Bodo Vogt, 2017. "What really matters in attraction effect research: when choices have economic consequences," Marketing Letters, Springer, vol. 28(1), pages 127-138, March.
    5. Marcel Lichters & Marko Sarstedt & Bodo Vogt, 2015. "On the practical relevance of the attraction effect: A cautionary note and guidelines for context effect experiments," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 5(1), pages 1-19, June.
    6. David Boto-García & Petr Mariel & José Baños Pino & Antonio Alvarez, 2022. "Tourists’ willingness to pay for holiday trip characteristics: A Discrete Choice Experiment," Tourism Economics, , vol. 28(2), pages 349-370, March.
    7. Marcel Lichters & Marko Sarstedt & Bodo Vogt, 2015. "On the practical relevance of the attraction effect: A cautionary note and guidelines for context effect experiments," AMS Review, Springer;Academy of Marketing Science, vol. 5(1), pages 1-19, June.
    8. Lichters, Marcel & Müller, Holger & Sarstedt, Marko & Vogt, Bodo, 2016. "How durable are compromise effects?," Journal of Business Research, Elsevier, vol. 69(10), pages 4056-4064.

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    More about this item

    Keywords

    Household choice; Experiment; Couples; Family; Anomalies; Endowment effect; Compromise effect; Asymmetric dominance; ‘More is less’; C920; D130; D80;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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