Are preferences complete? An experimental measurement of indecisiveness under risk

We propose an experimental design allowing a behavioral test of the axiom of completeness of individual preferences. The central feature of our design consists in enabling subjects to postpone commitment at a small cost. Our main result is that preferences are significantly incomplete. We use lotteries as choice alternatives and we find that risk aversion is globally robust to preference incompleteness.

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Year of publication:	2006-08
Authors:	Danan, Eric ; Ziegelmeyer, Anthony
Institutions:	Max-Planck-Institut für Ökonomik, Max-Planck-Gesellschaft
Subject:	Incomplete preferences \| preference for flexibility \| risk aversion \| indecisiveness \| indifference

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Extent:	application/pdf
Series:	Papers on Strategic Interaction.
Type of publication:	Book / Working Paper
Notes:	43 pages
Classification:	C91 - Laboratory, Individual Behavior ; D11 - Consumer Economics: Theory
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005588023