Search results for "Revealed preference"
showing 4 items of 4 documents
Inferring Cognitive Heterogeneity From Aggregate Choices
2020
Theories of bounded rationality often assume a rich dataset of choices from many overlapping menus, limiting their practical applicability. In contrast, we study the problem of identifying the distribution of cognitive characteristics in a population of agents from a minimal dataset that consists of aggregate choice shares from a single menu, and includes no observable covariates of any kind. With homogeneous preferences, we find that “consideration capacity” and “consideration probability” distributions can both be recovered effectively if the menu is sufficiently large. This remains true generically when tastes are heterogeneous with a known distribution. When the taste distribution is un…
Choosing Who You Are: The Structure and Behavioral Effects of Revealed Identification Preferences
2017
Differences in individuals’ social identity have recently been shown to explain differences in behavior. But where do differences in social identity come from? Theory claims that identification allows people to affect their social identity by choosing who they are. Accordingly, this paper treats social identity as a choice and analyzes its behavioral effects. We find identification to be systematically related to behavioral heterogeneity in group-specific social preferences. In a first step, we measure identification preferences using a revealed preference approach in a laboratory experiment. Confirming social identity theory, participants reveal a stronger identification preference for gro…
Revealed preference and portfolio choice
1993
Abstract We show that the necessary and sufficient conditions for expected utility rationalizability of a single observed portfolio choice are identical to the necessary and sufficient conditions for non-expected utility rationalizability.
Do Children Cooperate Conditionally?:Adapting the Strategy Method for First-Graders
2020
We develop a public goods game (PGG) to measure cooperation and conditional cooperation in young children. Our design addresses several obstacles in adapting simultaneous and sequential PGGs to children who are not yet able to read or write, do not possess advanced abilities to calculate payoffs, and only have a very limited attention span. It features the combination of haptic offline explanation, fully standardized audiovisual instructions, computerized choices based on touchscreens, and a suitable incentive scheme. Applying our experimental protocol to 129 German first-graders, we find that already 6-year-olds cooperate conditionally and that the relative frequency of different cooperati…