We outline a strategy for distinguishing rank-dependent probability weighting from systematic risk misperceptions in field data. Our strategy relies on singling out a field environment with two key properties: (i) the objects of choice are money lotteries with more than two outcomes; and (ii)...

We use data on insurance deductible choices to estimate a structural model of risky choice that incorporates "standard" risk aversion (diminishing marginal utility for wealth) and probability distortions. We find that probability distortions?characterized by substantial overweighting of small...

This paper provides inference methods for best linear approximations to functions which are known to lie within a band. It extends the partial identification literature by allowing the upper and lower functions defining the band to be any functions, including ones carrying an index, which can be...

Multiplicity of equilibria implies that the relationship between the outcome variable and the exogenous variables characterising a model is a correspondence rather than a function. This results in an incomplete econometric model. Incompleteness complicates identification and statistical...

Measures of households’ past behavior, their expectations with respect to future events and contingencies, and their intentions with respect to future behavior are frequently collected using household surveys. These questions are conceptually difficult. Answering them requires elaborate...

We leverage the assumption that preferences are stable across contexts to par- tially identify and conduct inference on the parameters of a structural model of risky choice. Working with data on households’ deductible choices across three lines of insurance coverage and a model that nests...

We propose a bootstrap-based calibrated projection procedure to build con fidence intervals for single components and for smooth functions of a partially identi fied parameter vector in moment (in)equality models. The method controls asymptotic coverage uniformly over a large class of data...