Recently proposed models of risky choice imply systematic violations of transitivity of preference. Five studies explored whether people show patterns of intransitivity predicted by four descriptive models. To distinguish trueʺ violations from those produced by error,ʺ a model was fit in which...

This note presents an experimental study of the random lottery incentive mechanism. In the baseline treatment we observe risk behavior in a given choice problem. We show that by integrating a second, asymmetrically dominated choice problem in a random incentive mechanism risk behavior can be...

This doctoral thesis investigates the influence of overconfidence on the outcomes in experimental asset markets, both on the market and individual levels. Thesis consists of three parts. In the first part an instrument (test) is developed that is later used in economic experiments to measure...