Dynamic Choice and the Common Ratio Effect: An Experimental Investigation

The common ratio effect is a well-attested violation of expected utility theory. This paper uses four principles of dynamic choice to characterize alternative theoretical strategies for explaining the effect. It reports an experiment which tests these principles and, by implication, several well-kno...

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Bibliographic details
Volume: 108
Main Author: Cubitt, Robin
Starmer, Chris
Sugden, Robert
Format: Journal Article
Language: English
Place of publication: Royal Economic Society 1998
published in: Economic Journal Vol. 108; no. 450; pp. 1362 - 80
Data of publication: 1998
Series: Economic Journal
Online Access: available in Bonn?
Database: RePEc IDEAS
Database information Databases - DBIS