Separated Decisions

Paul Healy () and Alexander Brown

No 16-02, Working Papers from Ohio State University, Department of Economics

Abstract: An essential requirement in the analysis of choice data is that its elicitation be incentive compatible: the incentives provided should not skew agents’ choices. We test incentive compatibility of the random problem selection (RPS) payment mechanism, wherein one choice is randomly chosen for payment. We find that it is not incentive compatible when all decisions are shown in a standard list format. But when the rows of the list are randomized and shown on separate screens, incentive compatibility is restored. This causes more inconsistency between choices, but, since the experiment is incentive compatible, this inconsistency must be inherent in subjects’ preferences.

Keywords: Payment mechanism; experimental methodology; monotonicity; decisions under uncertainty (search for similar items in EconPapers)
JEL-codes: C90 D01 D03 D81 (search for similar items in EconPapers)
Pages: 24 Pages
Date: 2016-01
New Economics Papers: this item is included in nep-exp and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econ.ohio-state.edu/pdf/healy/wp16-02.pdf (application/pdf)

Related works:
Journal Article: Separated decisions (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osu:osuewp:16-02

Access Statistics for this paper

More papers in Working Papers from Ohio State University, Department of Economics 410 Arps Hall 1945 North High Street Columbus, Ohio 43210-1172.
Bibliographic data for series maintained by John Slaughter ().