Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/4133
Authors: 
Birnbaum, Michael H.
Schmidt, Ulrich
Year of Publication: 
2008
Series/Report no.: 
Kiel Working Paper 1396
Abstract: 
Several models of choice under uncertainty imply systematic violations of transitivity of preference. Our experiments explored whether people show patterns of intransitivity predicted by these models. To distinguish "true" violations from those produced by "error", a model was fit in which each choice can have a different error rate and each person can have a different pattern of true preferences that does not need to be transitive. Error rate for a choice is estimated from preference reversals between repeated presentations of the same choice. Our results showed that very few people repeated intransitive patterns. We can retain the hypothesis that transitivity best describes the data of the vast majority of participants.
Subjects: 
Errors
Regret theory
Transitivity
Decision making
JEL: 
C91
D81
Document Type: 
Working Paper

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