Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30248
Authors: 
Schmidt, Ulrich
Trautmann, Stefan T.
Year of Publication: 
2010
Series/Report no.: 
Kiel Working Paper 1610
Abstract: 
This paper presents an experimental study analyzing common consequence effects with binary choice, willingness-to-pay (WTP), and willingness-to-accept (WTA). Consistent with previous research we do not find clearcut evidence of fanning out in the absence of certainty effects. Violation rates of EU are more pronounced for WTP and WTA than for choice data. Moreover, there is a strong tendency for violations in the direction of fanning out. Our results reinforce the significance of common consequence effects and provide support for the operation of cancellation in prospect theory.
Subjects: 
Common consequence effects
fanning out
WTP
WTA
cancellation
JEL: 
C91
D81
Document Type: 
Working Paper

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