Multiple-switching behavior in choice-list elicitation of risk preference

• 成果类型: Article
• 署名作者: Chew, Soo Hong; Miao, Bin; Shen, Qiang; Zhong, Songfa
• 署名单位: Southwestern University of Finance & Economics - China; Renmin University of China; Shanghai International Studies University; National University of Singapore
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2022.105510
• 发表日期: 2022
• 关键词: Stochastic choice; random utility; Deliberate randomization; Choice list; risk preference; experiment

摘要

This study examines multiple-switching behavior (MSB) in choice-list elicitation of risk preference from the perspectives of stochastic choice. We distinguish between regular and irregular MSB, and find that subjects with more irregular MSB are more likely to violate first-order stochastic dominance. In contrast, subjects with more regular MSB are more likely to concurrently exhibit non-expected utility behavior and reduce compound lottery, and to deliberately randomize in repeated choice. Our results suggest the need to diagnose the quality of MSB when applying choice-list elicitations, and distinguish stochastic choice models including random utility and deliberate randomization.(c) 2022 Elsevier Inc. All rights reserved.