Reducing preference reversals: The role of preference imprecision and nontransparent methods

B-Tier
Journal: Health Economics
Year: 2018
Volume: 27
Issue: 8
Pages: 1230-1246

Authors (4)

José Luis Pinto‐Prades (not in RePEc) Fernando Ignacio Sánchez‐Martínez (not in RePEc) José María Abellán‐Perpiñán (not in RePEc) Jorge E. Martínez‐Pérez (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

Preferences elicited with matching and choice usually diverge (as characterised by preference reversals), violating a basic rationality requirement, namely, procedure invariance. We report the results of an experiment that shows that preference reversals between matching (Standard Gamble in our case) and choice are reduced when the matching task is conducted using nontransparent methods. Our results suggest that techniques based on nontransparent methods are less influenced by biases (i.e., compatibility effects) than transparent methods. We also observe that imprecision of preferences influences the degree of preference reversals. The preference reversal phenomenon is less strong in subjects with more precise preferences.

Technical Details

RePEc Handle
repec:wly:hlthec:v:27:y:2018:i:8:p:1230-1246
Journal Field
Health
Author Count
4
Added to Database
2026-01-24