Discriminating between Preference Functionals: A Preliminary Monte Carlo Study

Enrica Carbone and John Hey

Chapter 4 in Experiments in Economics:Decision Making and Markets, 2018, pp 99-118 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This article is connected with recent attempts to estimate EU and Generalised EU preference functionals using (complete ranking) experimental data and maximum likelihood estimation techniques. In particular we explore, using Monte Carlo techniques, the power of such procedures in correctly determining the true preference functional. We conclude that several of the more popular generalisations to EU are very difficult to disentangle, and that the techniques are rather poor at correctly identifying EU when it is the correct functional.

Keywords: Experimental Economics; Risk; Ambiguity; Markets; Auctions; Bargaining; Econometrics; Methodology (search for similar items in EconPapers)
JEL-codes: C90 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789813235816_0004 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789813235816_0004 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Discriminating between Preference Functionals: A Preliminary Monte Carlo Study (1994)
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:wsi:wschap:9789813235816_0004

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().