Common ratio effects should be ruled out if subjects' preferences satisfy compound independence, reduction of compound … lotteries, and coalescing. In other words, at least one of these axioms should be violated in order to generate a common ratio … observation of common ratio effects.We observe that compound independence and reduction of compound lotteries hold, whereas …

functionals from round to round. Instead, we focus on choice problems allowing for direct tests of independence and coalescing. We … show that variability of responses as well as violations of independence and coalescing decrease from earlier to later …