Dasgupta, Utteeyo Gangadharan, Lata Maitra, Pushkar Mani, Subha
Year of Publication:
IZA Discussion Papers 8579
The goal of this paper is to examine stability in preferences using the Stigler-Becker state-dependent framework. Using a randomized intervention that changes the opportunity sets of individuals we construct a unique panel data from an artefactual field experiment and evaluate whether the change in the state space influences our selected indicators of preferences: risk, competitiveness, and confidence. We find that there is considerable heterogeneity of preferences across individuals at a point in time; risk and competitive preferences inter-temporally are consistent with state-dependent preferences, while measures of confidence seem to depend on past experiences.
preference stability state contingent preferences artefactual field experiment