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Monty Hall's three doors problem is a well-known "anomaly" in economics. It appears to be an example of a systematic violation of the assumption of subjects' rationality. Many papers have studied the Monty Hall anomaly under different perspectives (i.e. computerizing, learning, grouping,...
Persistent link: https://www.econbiz.de/10005526804
This paper purports to provide some evidence on the effect of rating agencies on herding in financial markets. By means of a laboratory experiment, we investigate the effect and interaction between private and public information. Previous experiments showed that lemmings behaviour can survive in...
Persistent link: https://www.econbiz.de/10005526808
Persistent link: https://www.econbiz.de/10005396092
Persistent link: https://www.econbiz.de/10005408217
In the 40’s and early 50’ two decision theories were proposed and have since dominated the scene of the fascinating field of decision-making. In 1944 – when von Neumann and Morgenstern showed that if preferences are consistent with a set of axioms then it is possible to represent these...
Persistent link: https://www.econbiz.de/10005408229
Experimental research on decision making under risk has until now always employed choice data in order to evaluate the empirical performance of expected utility and the alternative non-expected utility theories. The present paper performs a similar analysis which relies on pricing data instead...
Persistent link: https://www.econbiz.de/10005464744
This paper provides an experimental test of the traveller’s dilemma. Our investigation aims to address the research hypothesis that introducing a reference point à la Schelling (set equal to the Pareto optimal solution) might drive people away from rationality even when the size of the...
Persistent link: https://www.econbiz.de/10011108447
In this paper we analyse the empirical performance of several preference functionals using individual and group data. Our investigation aims to address two fundamental questions that have, until now, not been addressed in literature. Specifically, we intend to assess if there exists a risky...
Persistent link: https://www.econbiz.de/10011108949
This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results indicate that subjects consider the probability of loss (loss size) when they make buying decisions (paying decisions). Most individuals are risk averse with no specific threshold...
Persistent link: https://www.econbiz.de/10011110638
Experimental research on decision making under risk has until now always employed choice data in order to evaluate the empirical performance of expected utility and the alternative non-expected utility theories. The present paper performs a similar analysis which relies on pricing data instead...
Persistent link: https://www.econbiz.de/10011165898