Testing for Salience Effects in Choices under Risk

• 成果类型: Article
• 署名作者: Nielsen, Carsten S.; Sebald, Alexander C.; Sorensen, Peter N.
• 署名单位: University of Copenhagen; Copenhagen Business School
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/rest_a_01307
• 发表日期: 2025-05
• 页码: 741-754
• 关键词: PROSPECT-THEORY; decision-making; utility-theory; disappointment; Similarity; regret; MODEL

摘要

We construct and run an experiment to test the most basic choiceeffect predicted by salience theory. Subjects allocate wealth between arisky and a safe investment. While we vary an apparent payoff ratio to in-fluence salience, treatments have economically equivalent consequences.Most other theories of behavior then predict zero effect. Our experimen-tal findings are strongly consistent with the behavioral implication of acontinuous version of salience theory. We provide a novel structural es-timate on the strength of salience. In our setting, increasing the relativepayoff contrast by 1% is equivalent to an increased odds ratio by about0.4%.