Kaivanto, Kim and Kroll, Eike B. (2012) Negative recency, randomization device choice, and reduction of compound lotteries. Economics Letters, 115 (2). pp. 263-267. ISSN 0165-1765Full text not available from this repository.
We report an experiment in which subjects are not indifferent between real-money lotteries implemented with randomization devices that are equivalent under the Reduction Axiom. Instead, choice behavior is consistent with subjective distortion of conditional probability, and this persists in treatment conditions that control for (i) computational limitations and (ii) possible confounding by ratio bias.
|Journal or Publication Title:||Economics Letters|
|Subjects:||H Social Sciences > HB Economic Theory|
|Departments:||Lancaster University Management School > Economics|
|Deposited On:||10 Jul 2012 11:42|
|Last Modified:||10 Dec 2016 02:42|
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