Revealing a preference for mixtures: An experimental study of risk

• 成果类型: Article
• 署名作者: Feldman, Paul; Rehbeck, John
• 署名单位: Johns Hopkins University; Johns Hopkins Bloomberg School of Public Health; University System of Ohio; Ohio State University
• 刊物名称: QUANTITATIVE ECONOMICS
• ISSN/ISSBN: 1759-7323
• DOI: 10.3982/QE1694
• 发表日期: 2022
• 页码: 761-786
• 关键词: Risk preferences; preference for randomization; stochastic choice; revealed preferences

摘要

Using a revealed preference approach, we conduct an experiment where subjects make choices from linear convex budgets in the domain of risk. We find that many individuals prefer mixtures of lotteries in ways that systematically rule out expected utility behavior. We explore the extent to which an individual's preference to choose mixtures is related to a preference for randomization by comparing choices from a convex choice task to the decisions made in a repeated discrete choice task. We find that a preference to mix is positively correlated with behavior from repeated discrete choice tasks.