We conduct an experiment to (i) measure the structure of preferences over lotteries and (ii) test for stability of the probability transformation functions over different choice sets. The design is based on manipulations of the "probability triangle" A disaggregated nonparametric analysis in...

We propose and analyze a generalization of present value maximization, "time-order dependent present value (TODPV)," for intertemporal income choice. The model is analagous to the rank dependent expected utility model (RDEU) for choice under risk. The main feature of interest in the model is the...

We propose and analyze a generalization of present value maximization, "order dependent present value (ODPV)," for intertemporal income choice. The model is analagous to the rank dependent expected utility model (RDEU) for choice under risk. The main feature of interest in the model is the...

It is common in studies of individual choice behavior to report averages of the behavior under consideration. In the social sciences the mean is, indeed, often the quantity of interest, but at times focusing on the mean can be misleading. For example, it is well known in labor economics that...

We report results of an experiment testing for present-value maximization in intertemporal income choice. Two-thirds of subjects did not maximize present value. Through a series of experimental manipulations that impose costs on non-present value maximizers, we are able to reduce the level of...

This article reports on an experiment concerned with a two-stage, two-person, simultaneous-demand bargaining game. The focus of analysis is on a prediction for concession behavior in the second-stage game provided by Harsanyi's “risk dominance†principle, which is at odds with the...