Imprecision as an Account of the Preference Reversal Phenomenon

David J. Butler, Graham C. Loomes

Research output: Contribution to journalArticlepeer-review

77 Citations (Scopus)

Abstract

Many individuals' choices and valuations involve a degree of uncertainty/imprecision. This paper reports an experiment designed to obtain some measure of imprecision and to examine the extent to which it can explain preference reversals of two opposite forms, one of which appears not to have been reported previously. The model of imprecision we examine not only predicts both patterns but also provides an account of earlier results that are otherwise not well explained. The results suggest that any successful descriptive theory of choice and valuation will need to allow in some way for the imprecision surrounding people's decisions.
Original languageEnglish
Pages (from-to)277-297
Number of pages21
JournalAmerican Economic Review
Volume97
Issue number1
DOIs
Publication statusPublished - Mar 2007

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