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We propose an experimental design allowing a behavioral test of the axiom ofcompleteness of individual preferences. The … preferences are significantly incomplete. We use lotteries as choice alternatives and we find that risk aversion is globally …
Persistent link: https://www.econbiz.de/10005866755
Completeness, the most commonly assumed axiom in preference theory,has not received much attention from the experimental literature. Indeed,incomplete preferences model a cognitive phenomenon (an agent's inabilityto compare alternatives), and therefore cannot be directly revealed throughchoice...
Persistent link: https://www.econbiz.de/10005866783