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26 juin 2020
- 2006.14869
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Economics - Theoretical EconomicsSujets proches
Economic theory Political economyCiter ce document
Andrew Ellis et al., « Revealing Choice Bracketing », arXiv - économie
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Résumé
In a decision problem comprised of multiple choices, a person may fail to take into account the interdependencies between their choices. To understand how people make decisions in such problems, we design a novel experiment and revealed preference tests that determine how each subject brackets their choices. In separate portfolio allocation under risk, social allocation, and induced-value function shopping experiments, we find that 40-43% of our subjects are consistent with narrow bracketing while 0-15% are consistent with broad bracketing. Adjusting for each model's predictive precision, 74% of subjects are best described by narrow bracketing, 13% by broad bracketing, and 6% by intermediate cases.