Searching for preference stability in a state dependent world |
| |
Affiliation: | 1. Department of Economics, Monash University, Australia;2. Department of Risk Management & Insurance and Center for the Economic Analysis of Risk, Robinson College of Business, Georgia State University, USA |
| |
Abstract: | We evaluate stability of preference using a randomized intervention that exogenously changes the income opportunity set of participants. We use a unique panel data, comprising of surveys and lab-in-the-field experiments conducted before and after the intervention, to examine whether our elicited measures of preferences (risk, competitiveness, and confidence) remain stable. We find that after accounting for the change in the income opportunity set, the elicited preferences indeed appear to be temporally stable under a state dependent framework. Consequently, even though we find across subject variation in preferences, the average measure of preferences remain temporally stable, providing support to a representative agent model of decision-making with temporally stable preferences. |
| |
Keywords: | Temporal stability of preferences State contingent preferences Lab-in-the field experiment C9 D01 D03 |
本文献已被 ScienceDirect 等数据库收录! |
|