Multiple-Switching Behavior in the Elicitation of Risk Preferences


[题目]:Multiple-Switching Behavior in the Elicitation of Risk Preferences          





[摘要]:While it is commonly observed that subjects switch multiple times in the choice list elicitation of risk preference, little has been done to systematically examine the nature of this multiple switching behavior (MSB). We differentiate two types of MSB: for odd (even) MSB, subjects initially choose options on the left hand side, and eventually switch to options on the right (left) hand side. In two experiments, we observe that subjects with higher frequency of odd MSB are more likely to deliberately randomize in repeated choices presented three times in a row (Agranov and Ortoleva, 2017), and to exhibit Allais-type behavior as well as to satisfy reduction of compound lottery axiom at the same time. By contrast, we show that subjects with higher frequency of even MSB are more likely to violate first-order stochastic dominance. Our results support models of deliberate randomization to partially account for MSB, and enable a further discrimination among models of stochastic choice.                    

[主讲人简介]: Dr. Miao Bin is currently a Professor at Shanghai University of Finance and Economics. Dr. Miao is interested in using methodologies from experimental economics and behavioral economics to understand individual decision making in various environments, including risk, ambiguity, and time. Dr. Miao has published in economics journals including Econometrica, American Economic Review and Economic Theory.