A theory of robust experiments for choice under uncertainty

Grant, S., Kline, J., Meneghel, I., Quiggin, J. and Tourky, R. (2016) A theory of robust experiments for choice under uncertainty. Journal of Economic Theory, 165 124-151. doi:10.1016/j.jet.2016.04.013


Author Grant, S.
Kline, J.
Meneghel, I.
Quiggin, J.
Tourky, R.
Title A theory of robust experiments for choice under uncertainty
Journal name Journal of Economic Theory   Check publisher's open access policy
ISSN 1095-7235
0022-0531
Publication date 2016-09-01
Year available 2016
Sub-type Article (original research)
DOI 10.1016/j.jet.2016.04.013
Open Access Status Not Open Access
Volume 165
Start page 124
End page 151
Total pages 28
Place of publication Maryland Heights, MO, United States
Publisher Academic Press
Collection year 2017
Language eng
Abstract Thought experiments are commonly used in the theory of behavior in the presence of risk and uncertainty to test the plausibility of proposed axiomatic postulates. The prototypical examples of the former are the Allais experiments and of the latter are the Ellsberg experiments. Although the lotteries from the former have objectively specified probabilities, the participants in both kinds of experiments may be susceptible to small deviations in their subjective beliefs. These may result from a variety of factors that are difficult to check in an experimental setting: including deviations in the understanding and trust regarding the experiment, its instructions and its method. Intuitively, an experiment is robust if it is tolerant to small deviations in subjective beliefs in models that are in an appropriate way close to the analyst's model. The contribution of this paper lies in the formalization of these ideas
Keyword Choice experiments
Generalized mean utility
Non-expected utility
Robust tests
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: HERDC Pre-Audit
School of Economics Publications
 
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