TY - Journal Article
T1 - The stochastic component in choice and regression to the mean
JF - Theory and decision
VL - 71
IS - 2
SP - 251
EP - 267
A1 - García-Gallego, Aurora
A2 - Georgantzís, Nikolaos
A2 - Navarro-Martínez, Daniel
A2 - Sabater-Grande, Gerardo
CY - Boston
PB - Springer US
PY - 2011
UR - https://bonnus.ulb.uni-bonn.de/SummonRecord/FETCH-LOGICAL-c611t-ca54f78a0739e921cf7ff61c4cc39457ea09d247a17ab77bed6dbdb840a25dd83
N2 - In this article, we illustrate experimentally an important consequence of the stochastic component in choice behaviour which has not been acknowledged so far. Namely, its potential to produce ‘regression to the mean’ (RTM) effects. We employ a novel approach to individual choice under risk, based on repeated multiple-lottery choices (i.e. choices among many lotteries), to show how the high degree of stochastic variability present in individual decisions can distort crucially certain results through RTM effects. We demonstrate the point in the context of a social comparison experiment.
KW - Applied sciences
KW - Business & Economics
KW - Choice under risk
KW - Decision theory. Utility theory
KW - Economic Theory
KW - Economics
KW - Economics / Management Science
KW - Exact sciences and technology
KW - Game Theory, Economics, Social and Behav. Sciences
KW - Game Theory/Mathematical Methods
KW - Mathematical Methods In Social Sciences
KW - Methodology of the Social Sciences
KW - Multiple-lottery choices
KW - Operational research and scientific management
KW - Operational research. Management science
KW - Operations Research/Decision Theory
KW - Regression to the mean
KW - Social Sciences
KW - Social Sciences, Mathematical Methods
KW - Stochastic component in choice
KW - ERRORS
KW - PREFERENCE REVERSALS
KW - BEHAVIOR
KW - VALIDATION
KW - RISK ATTITUDES
KW - Multiple-lottery choices
KW - Stochastic component in choice
KW - DEAL
KW - CONTINGENT VALUATION
KW - Choice under risk
KW - Regression to the mean
KW - PROBABILISTIC THEORY
KW - EXPECTED UTILITY-THEORY
KW - Lottery
KW - Variability
KW - Multiple choice
KW - Gambling game
ER -