Skip navigation
Skip navigation
The system will be down for maintenance between 8:00 and 8:15am on Wednesday 12, December 2018

A theory of robust experiments for choice under uncertainty

Grant, S.; Kline, J.; Meneghel, I.; Quiggin, J.; Tourky, R.

Description

Thought experiments are commonly used in the theory of behavior in the presence of risk and uncertainty to test the plausibility of proposed axiomatic postulates. The prototypical examples of the former are the Allais experiments and of the latter are the Ellsberg experiments. Although the lotteries from the former have objectively specified probabilities, the participants in both kinds of experiments may be susceptible to small deviations in their subjective beliefs. These may result from a...[Show more]

dc.contributor.authorGrant, S.
dc.contributor.authorKline, J.
dc.contributor.authorMeneghel, I.
dc.contributor.authorQuiggin, J.
dc.contributor.authorTourky, R.
dc.date.accessioned2016-09-30T04:07:53Z
dc.date.available2016-09-30T04:07:53Z
dc.identifier.issn0022-0531
dc.identifier.urihttp://hdl.handle.net/1885/109121
dc.description.abstractThought experiments are commonly used in the theory of behavior in the presence of risk and uncertainty to test the plausibility of proposed axiomatic postulates. The prototypical examples of the former are the Allais experiments and of the latter are the Ellsberg experiments. Although the lotteries from the former have objectively specified probabilities, the participants in both kinds of experiments may be susceptible to small deviations in their subjective beliefs. These may result from a variety of factors that are difficult to check in an experimental setting: including deviations in the understanding and trust regarding the experiment, its instructions and its method. Intuitively, an experiment is robust if it is tolerant to small deviations in subjective beliefs in models that are in an appropriate way close to the analyst's model. The contribution of this paper lies in the formalization of these ideas.
dc.publisherElsevier
dc.rights© 2016 Elsevier Inc. http://www.sherpa.ac.uk/romeo/issn/0022-0531/..."Author's post-print on open access repository after an embargo period of between 12 months and 48 months" from SHERPA/RoMEO site (as at 30/09/16).
dc.sourceJournal of Economic Theory
dc.subjectChoice experiments
dc.subjectRobust tests
dc.subjectNon-expected utility
dc.subjectGeneralized mean utility
dc.titleA theory of robust experiments for choice under uncertainty
dc.typeJournal article
local.identifier.citationvolume165
dc.date.issued2016
local.publisher.urlhttp://www.elsevier.com/
local.type.statusAccepted Version
local.contributor.affiliationGrant, S., Research School of Economics, The Australian National University
local.contributor.affiliationMeneghel, I., Research School of Economics, The Australian National University
local.contributor.affiliationTourky, R., Research School of Economics, The Australian National University
local.description.embargo2018-09-30
local.bibliographicCitation.startpage124
local.bibliographicCitation.lastpage151
local.identifier.doi10.1016/j.jet.2016.04.013
dcterms.accessRightsOpen Access
CollectionsANU Research Publications

Download

File Description SizeFormat Image
01_Grant_A_Theory_of_Robust_2016.pdf192.46 kBAdobe PDFThumbnail


Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  27 November 2018/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator