Resolving inconsistencies in utility measurement under risk: Tests of generalizations of expected utility

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Bleichrodt, Han; Abellán-Perpiñan, José María; Pinto, JoséLuis; Méndez-Martínez, Ildefonso. Resolving inconsistencies in utility measurement under risk: Tests of generalizations of expected utility. 2005
http://hdl.handle.net/10230/1222
To cite or link this document: http://hdl.handle.net/10230/1222
dc.contributor.author Bleichrodt, Han
dc.contributor.author Abellán-Perpiñan, José María
dc.contributor.author Pinto, JoséLuis
dc.contributor.author Méndez-Martínez, Ildefonso
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2005-01-01
dc.identifier.uri http://hdl.handle.net/10230/1222
dc.description.abstract This paper explores biases in the elicitation of utilities under risk and the contribution that generalizations of expected utility can make to the resolution of these biases. We used five methods to measure utilities under risk and found clear violations of expected utility. Of the theories studies, prospect theory was most consistent with our data. The main improvement of prospect theory over expected utility was in comparisons between a riskless and a risky prospect(riskless-risk methods). We observed no improvement over expected utility in comparisons between two risky prospects (risk-risk methods). An explanation why we found no improvement of prospect theory over expected utility in risk-risk methods may be that there was less overweighting of small probabilities in our study than has commonly been observed.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 798
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Resolving inconsistencies in utility measurement under risk: Tests of generalizations of expected utility
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:12Z
dc.subject.keyword Behavioral and Experimental Economics
dc.subject.keyword Labour, Public, Development and Health Economics
dc.subject.keyword utility measurement
dc.subject.keyword nonexpected utility
dc.subject.keyword prospect theory
dc.subject.keyword health.
dc.subject.keyword leex
dc.rights.accessRights info:eu-repo/semantics/openAccess


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