The relationship between risk attitudes and heuristics in search tasks : a laboratory experiment


Schunk, Daniel ; Winter, Joachim


[img]
Preview
PDF
dp04_23.pdf - Published

Download (614kB)

URL: http://ub-madoc.bib.uni-mannheim.de/2721
URN: urn:nbn:de:bsz:180-madoc-27211
Document Type: Working paper
Year of publication: 2004
Publication language: English
Institution: School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre
MADOC publication series: Sonderforschungsbereich 504 > Rationalitätskonzepte, Entscheidungsverhalten und ökonomische Modellierung (Laufzeit 1997 - 2008)
Subject: 330 Economics
Classification: JEL: D83 C91 ,
Subject headings (SWD): Heuristik , Risiko , Prospect-Theorie
Keywords (English): search , heuristics , utility function elicitation , risk attitudes , prospect theory
Abstract: The existing evidence from laboratory experiments suggests that relatively simple heuristics describe observed search behavior better than the optimal stopping rule derived under risk neutrality. Such behavior could be generated by two entirely different classes of decision rules: (i) rules that are optimal conditional on utility functions that depart from risk neutrality or (ii) heuristics that derive from limited cognitive processing capacities and satisfycing. In this paper, we develop and test search models that depart from the standard assumption of risk neutrality in order to distinguish these two possibilities. In our experiment, we present subjects not only with a standard search task, but also with a series of lottery tasks that serve to elicit the shape of their utility functions. We do not find a relationship between behavior in the search task and measures of risk aversion. Our data suggest, however, that loss aversion is important for explaining search behavior.
Additional information:

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




+ Citation Example and Export

Schunk, Daniel ; Winter, Joachim (2004) The relationship between risk attitudes and heuristics in search tasks : a laboratory experiment. Open Access [Working paper]
[img]
Preview


+ Search Authors in

+ Download Statistics

Downloads per month over past year

View more statistics



You have found an error? Please let us know about your desired correction here: E-Mail


Actions (login required)

Show item Show item