Revealed Preferences for Randomization: An Overview
- (pp. 426-30)
Abstract
We survey the empirical evidence on subjects' desire to randomize and its relation to stochastic choice. Preferences for randomization are documented by a substantial body of empirical work using different methodologies and in several domains, including objective lotteries and ambiguous gambles, social preferences, time preferences, and games. The desire to randomize is correlated across domains and related to standard evidence of stochastic choice. We relate this evidence to models of nonexpected utility and incomplete preferences.Citation
Agranov, Marina, and Pietro Ortoleva. 2022. "Revealed Preferences for Randomization: An Overview." AEA Papers and Proceedings, 112: 426-30. DOI: 10.1257/pandp.20221093Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D44 Auctions
- D81 Criteria for Decision-Making under Risk and Uncertainty
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making