Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301032 
Year of Publication: 
2024
Series/Report no.: 
ECONtribute Discussion Paper No. 326
Publisher: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Abstract: 
We investigate whether violations of canonical axioms of choice under risk are mistakes or a manifestation of true preferences. First, we elicit axiom and gamble preferences and then allow subjects to revise their potentially conflicting preferences. Among the behavioral patterns that allow for a clear-cut interpretation on the decision level, we find that roughly 70% of axiom violations are intentional whereas only 30% are mistakes. On the subject level we can clearly categorize almost half of our subjects. Among those, roughly 24% are rational expected utility maximizers, 24% make occasional mistakes, and 52% refute the normative value of these axioms.
Subjects: 
Axiomatic rationality
Choice under risk
Context-dependent preferences
Mistakes
Regret theory
JEL: 
C91
D01
D81
D91
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.