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Foundations of ambiguity models under symmetry: α-MEU and smooth ambiguity
Klibanoff, Peter; Mukerji, Sujoy; Seo, Kyoungwon; … - 2021
The α-MEU model and the smooth ambiguity model are two popular models in decision making under ambiguity. However, the …
Persistent link: https://www.econbiz.de/10012670885
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Symmetry axioms and perceived ambiguity
Klibanoff, Peter; Mukerji, Sujoy; Seo, Kyoungwon - 2017
between the set of relevant measures, shown by KMS [21] to reflect only perceived ambiguity, and the set of measures (which we … perceived ambiguity. Regarding symmetry assumptions, we show that, under relatively mild conditions, a variety of preference … stringent. Only when it is satisfied may the Bewley set be interpreted as reflecting only perceived ambiguity and not also taste …
Persistent link: https://www.econbiz.de/10011927996
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Strength of preference and decision making under risk
Alós-Ferrer, Carlos; Garagnani, Michele - 2019
Overwhelming evidence from the cognitive sciences shows that, in simple discrimination tasks (determining what is louder, longer, brighter, or even which number is larger) humans make more mistakes and decide more slowly when the stimuli are closer along the relevant scale. We investigate to...
Persistent link: https://www.econbiz.de/10012056813
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Strength of preference and decision making under risk
Alós-Ferrer, Carlos; Garagnani, Michele - 2020
Influential economic approaches as random utility models or quantal-response equilibria assume a monotonic relation between error rates and choice difficulty or "strength of preference", in line with widespread evidence from discrimination tasks in psychology and neuroscience. However, while the...
Persistent link: https://www.econbiz.de/10012244619
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Stochastic choice and preference reversals
Alós-Ferrer, Carlos; Buckenmaier, Johannes; Garagnani, … - 2020
The preference reversal phenomenon is one of the most important, long-standing, and widespread anomalies contradicting economic models of decisions under risk. It describes the robust observation of frequent "standard reversals" where long-shot gambles are valued above moderate ones but then the...
Persistent link: https://www.econbiz.de/10012420682
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Strength of preference and decisions under risk
Alós-Ferrer, Carlos; Garagnani, Michele - 2022
Influential economic approaches as random utility models assume a monotonic relation between choice frequencies and "strength of preference," in line with widespread evidence from the cognitive sciences, which also document an inverse relation to response times. However, for economic decisions...
Persistent link: https://www.econbiz.de/10013164128
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Identifying nontransitive preferences
Alós-Ferrer, Carlos; Fehr, Ernst; Garagnani, Michele - 2022
Transitivity is perhaps the most fundamental choice axiom and, therefore, almost all economic models assume that preferences are transitive. The empirical literature has regularly documented violations of transitivity, but these violations pose little problem as long as they are simply a result...
Persistent link: https://www.econbiz.de/10013285526
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Stochastic choice and preference reversals
Alós-Ferrer, Carlos; Buckenmaier, Johannes; Garagnani, … - 2021
Preferences over risky alternatives can be elicited by different methods, including direct pairwise choices and willingness-to-accept valuations. The results are frequently at odds, casting doubts on the foundations of economics. We develop a stochastic choice model predicting when...
Persistent link: https://www.econbiz.de/10012631629
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Identifying nontransitive preferences
Alós-Ferrer, Carlos; Fehr, Ernst; Garagnani, Michele - 2023
Transitivity is perhaps the most fundamental choice axiom and, therefore, almost all economic models assume that preferences are transitive. The empirical literature has regularly documented violations of transitivity, but these violations pose little problem as long as they are simply a result...
Persistent link: https://www.econbiz.de/10013531822
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On the behavior of proposers in ultimatum games
Brenner, Thomas; Vriend, Nicolaas J. - 2003
We demonstrate that one should not expect convergence of the proposals to the subgame perfect Nash equilibrium offer in standard ultimatum games. First, imposing strict experimental control of the behavior of the receiving players and focusing on the behavior of the proposers, we show...
Persistent link: https://www.econbiz.de/10010284129