ICES Seminar in Experimental Economics and Game Theory
Revealed Incomplete Preferences
Friday, September 2, 2022 12:00 PM to 1:00 PM EDT
Vernon Smith Hall (formerly Metropolitan Building), 5183
The ICES Seminar in Experimental Economics and Game Theory of the Fall 2022 semester will feature:
California Institute of Technology
Revealed Incomplete Preferences
Abstract
We elicit incomplete preferences over monetary gambles with subjective uncertainty. Subjects rank gambles, and these rankings are used to estimate preferences; payments are based on estimated preferences. About 40% of subjects express incompleteness, but they do so infrequently. Incompleteness is similar for individuals with precise and imprecise beliefs, and in an environment with objective uncertainty, suggesting that it results from imprecise tastes more than imprecise beliefs. When we force subjects to choose, we observe more inconsistencies and preference reversals. Evidence suggests there is incompleteness that is indirectly revealed—in up to 97% of subjects—in addition to what we directly measure.
For more information about the Seminar Series, please visit the Seminar Schedule homepage.