Individuals exhibit a randomization preference if they prefer random mixtures of two bets to each of the involved bets. Such preferences provide the foundation of various models of uncertainty aversion. However, it has to our knowledge not been empirically investigated whether uncertainty-averse...

This paper adds to the economic-psychological research on tax compliance by experimentally testing a simple auditing rule that induces strategic uncertainty among taxpayers. Under this rule, termed the bounded rule, taxpayers are informed of the maximum number of audits by a tax authority, so...

We experimentally investigate the disposition of decision makers to use case-based reasoning as suggested by Case-Based Decision Theory (Gilboa and Schmeidler, 1995). Our subjects face a monopoly decision problem about which they have very limited information. Information is presented in a...

In the generalized expected utility framework, the multiplicative relationship between preferences and beliefs complicates the identification of risk preferences. In experimental or field settings, the respondent's decision weight must be known with certainty to confidently infer accurate...

This paper establishes a new method for eliciting Willingness to Pay (WTP) in contingent valuation (CV) studies with an open-ended elicitation format: the Range-WTP method. In contrast to the traditional approach for eliciting Point-WTP, Range-WTP explicitly allows for preference uncertainty in...

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...