The empirical relationship between nonstandard economic behaviors

Mark Dean; Pietro Ortoleva

doi:10.1073/pnas.1821353116

The empirical relationship between nonstandard economic behaviors

Mark Dean, Pietro Ortoleva

Princeton School of Public and International Affairs

Research output: Contribution to journal › Article › peer-review

28 Scopus citations

Abstract

We study the joint distribution of 11 behavioral phenomena in a group of 190 laboratory subjects and compare it to the predictions of existing models as a step in the development of a parsimonious, general model of economic choice. We find strong correlations between most measures of risk and time preference, between compound lottery and ambiguity aversion, and between loss aversion and the endowment effect. Our results support some, but not all attempts to unify behavioral economic phenomena. Overconfidence and gender are also predictive of some behavioral characteristics.

Original language	English (US)
Pages (from-to)	16262-16267
Number of pages	6
Journal	Proceedings of the National Academy of Sciences of the United States of America
Volume	116
Issue number	33
DOIs	https://doi.org/10.1073/pnas.1821353116
State	Published - Aug 13 2019

All Science Journal Classification (ASJC) codes

General

Keywords

Endowment effect
Loss aversion
Nonexpected utility
Risk and time preferences
Trust game

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10.1073/pnas.1821353116

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KW - Trust game

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The empirical relationship between nonstandard economic behaviors

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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