In recent years, there has been a growing interest in policy applications of different auction systems. This paper reports on a series of experiments that were used to design and implement an auction in a unique policy-making environment. In April, 2000, the Georgia legislature passed a unique...

A menu of paired lottery choices is structured so that the crossover point to the high-risk lottery can be used to infer the degree of risk aversion. With normal laboratory payoffs of several dollars, most subjects are risk averse and few are risk loving. Scaling up all payoffs by factors of...

This paper reports a new experimental test of prospect theory's reflection effect. We conduct a sequence of experiments that allow us to directly compare choices under reflected gains and losses where real and hypothetical payoffs range from several dollars to over $100. Lotteries with positive...