Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203189 
Authors: 
Year of Publication: 
2018
Series/Report no.: 
IES Working Paper No. 11/2018
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
We combine the Critical Cost Efficiency Index and the Houtman Maks Index to evaluate the consistency of subjects in a set of choice data from budgets. We show that by simply allowing subjects for one significant mistake (by removing the worst observation), the mean Critical Cost Efficiency Index in a set of choices from an online experiment with the general population increases by 6 percentage points. Furthermore, we find that by excluding the worst observation per subject, the fraction of subjects wasting 5% or less of their budget increases from 45% to 64%. The highest improvement in terms of efficiency can be seen among retired and 65+ aged subjects which indicates that their low level of effciency is largely due to a single mistake.
Subjects: 
Critical Cost Efficiency Index
Houtman Maks Index
Socio-economic groups
observation
JEL: 
D12
D14
D81
D83
D91
G11
Document Type: 
Working Paper

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