Axiom of Monotonicity: An Experimental Test

The Axiom of Monotonicity (AM) is a necessary condition for a number of expected utility representations, including those obtained by de Finetti (1930), von Neumann and Morgenstern (1944) and Savage (1954). The paper reports on experiments that directly test AM by eliminating strategic uncertainty, context, and peer effects. In this sterile and simple environment we do not observe AM violations under uncertainty but we do observe violations under ambiguity.

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Year of publication:	2010
Authors:	Sharma, Tridib ; Vadovic, Radovan
Institutions:	Centro de Investigación Económica (CIE), Departamento Académico de Economía
Subject:	Monotonicity \| Dominance \| Disjunction Effect \| Sure THing Principle

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 1003 39 pages
Classification:	D9 - Intertemporal Choice and Growth ; C7 - Game Theory and Bargaining Theory ; C9 - Design of Experiments
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010538933