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

A-Tier
Journal: Journal of Economic Theory
Year: 2022
Volume: 204
Issue: C

Authors (4)

Chew, Soo Hong (not in RePEc) Miao, Bin (not in RePEc) Shen, Qiang (not in RePEc) Zhong, Songfa (National University of Singapo...)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:jetheo:v:204:y:2022:i:c:s0022053122001004
Journal Field
Theory
Author Count
4
Added to Database
2026-01-29