Prince
| Autor: | Zhihua Li, D. van Dolder, Cathleen Johnson, Han Bleichrodt, Peter P. Wakker, Aurélien Baillon |
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| Přispěvatelé: | Applied Economics, Econometrics, Finance, Tinbergen Institute |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
SDG 16 - Peace Computer science media_common.quotation_subject SDG 16 - Peace Justice and Strong Institutions 05 social sciences Ambiguity Justice and Strong Institutions Microeconomics Incentive Willingness to pay Incentive compatibility Accounting 0502 economics and business 050207 economics Willingness to accept Preference (economics) Finance Expected utility hypothesis Endowment effect 050205 econometrics media_common |
| Zdroj: | Johnson, C, Baillon, A, Bleichrodt, H, Li, Z, van Dolder, D & Wakker, P P 2021, ' Prince : An improved method for measuring incentivized preferences ', Journal of Risk and Uncertainty, vol. 62, no. 1 . https://doi.org/10.1007/s11166-021-09346-9 Journal of Risk and Uncertainty, 62(1), 1-28. Springer Netherlands Journal of Risk and Uncertainty, 62(1). Springer Netherlands |
| ISSN: | 0895-5646 |
| DOI: | 10.1007/s11166-021-09346-9 |
| Popis: | This paper introduces the Prince incentive system for measuring preferences. Prince combines the tractability of direct matching, allowing for the precise and direct elicitation of indifference values, with the clarity and validity of choice lists. It makes incentive compatibility completely transparent to subjects, avoiding the opaqueness of the Becker-DeGroot-Marschak mechanism. It can be used for adaptive experiments while avoiding any possibility of strategic behavior by subjects. To illustrate Prince’s wide applicability, we investigate preference reversals, the discrepancy between willingness to pay and willingness to accept, and the major components of decision making under uncertainty: utilities, subjective beliefs, and ambiguity attitudes. Prince allows for measuring utility under risk and ambiguity in a tractable and incentive-compatible manner even if expected utility is violated. Our empirical findings support modern behavioral views, e.g., confirming the endowment effect and showing that utility is closer to linear than classically thought. In a comparative study, Prince gives better results than a classical implementation of the random incentive system. |
| Databáze: | OpenAIRE |
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