ICES Brown Bag for February 20

Events, Seminars | February 11, 2020

Join us for the ICES Brown Bag Lecture of the Spring 2020 semester, featuring Paul Feldman.

Dr. Feldman, of Johns Hopkins University, will discuss his paper Risky Mistakes and Revisions (Abstract). The talk will take place on Thursday, February 20th, from 12:00 to 1:00pm, in room 5075 of the Vernon Smith Hall, Arlington campus.

Coffee and dessert will be provided.

Please visit the Brown Bag Schedule to learn more about the Brown Bag series.

Abstract

Mistakes are inseparable from choices. We define mistakes as choices that are revised—changed—without any new information. In the lab, we use linear budgets over single-outcome lotteries to elicit choices under risk. To study mistakes, we allow subjects to revise a subset of their original choices. Revisions are prevalent as subjects revise their decisions over 85 percent of the time. Revisions drop by 15 percentage points with reminders. We exploit this difference between the revised and unrevised sets and explore the differences concerning normative benchmarks. The benchmarks are expected utility, stationarity (same choices across repetitions), and transitivity. We find that the set of revised choices increase consistency with all the benchmarks.

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