Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/31723
Authors: 
Rydval, Ondřej
Ortmann, Andreas
Prokosheva, Sasha
Hertwig, Ralph
Year of Publication: 
2009
Series/Report no.: 
Jena economic research papers 2009,002
Abstract: 
We replicate three pricing tasks of Gneezy, List and Wu (2006) for which they document the so called uncertainty effect, namely that people value a binary lottery over non-monetary outcomes less than other people value the lottery's worse outcome. Unlike the authors who implement a verbal lottery description, we use a physical lottery format which rules out any misinterpretation of the lottery structure. Contrary to Gneezy, List and Wu, we systematically observe that subjects’ willingness to pay for the lottery is significantly higher than other subjects' willingness to pay for the lottery's worse outcome.
Subjects: 
Risky choice
framing
experiments
task ambiguity
JEL: 
C81
C91
C93
D83
Document Type: 
Working Paper

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