ISSN:
1573-0476
Keywords:
Expected Utility theory
;
Common-Ratio Effect
;
experiments
;
groups
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract There is now overwhelming experimental evidence that individuals systematically violate the axioms of Expected Utility theory. In reality, however, many economic decisions are taken by, or on behalf of, groups whose members have a joint stake in those decisions. This paper reports on an experiment in which pairs of individuals are tested for Common-Ratio inconsistencies. We find that the agreed choices of subject-pairs follow a pattern of inconsistency very close to that of individuals' choices. We also look for evidence that group participation increases the consistency of the individuals themselves. With one solitary exception, we find none.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1007764411446
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