Existing evidence suggests that simple heuristics describe search behavior better than the optimal risk neutral stopping rule. Such behavior could be generated by two different classes of decision rules: (i) rules that are optimal conditional on utility functions departing from risk neutrality or (ii) heuristics derived from limited cognitive processing capacities and satisfycing. We test search models that depart from the standard assumption of risk neutrality to distinguish these two possibilities. In our experiment, we present subjects with a search task and with a specific lottery task to elicit their utility functions. Search heuristics are not related to measures of risk aversion, but to measures of loss aversion.
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