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Handbook of the Economics of Risk and Uncertainty
book

Handbook of the Economics of Risk and Uncertainty

by Mark Machina, W. Kip Viscusi
November 2013
Beginner content levelBeginner
896 pages
35h 10m
English
North Holland
Content preview from Handbook of the Economics of Risk and Uncertainty
John D. Hey
824
It was found that the best-fitting combination (by some distance) was CRRA with
Quiggin; that a little over 80% of the subjects were clearly RDEU while a little under
20% were clearly SEU; and there was one rather confused subject who could not be
classified. The Harless and Camerer tremble occurred with probability of a little over
1.0%. Crucially the mixture specification fitted significantly better than either, assuming
that all subjects were SEU or that all were RDEU.
Harrison and Rutstrom (2009) also estimate a Mixture Model in a similar context,
using data from an experiment with 60 pairwise-choice questions. They too chose ...
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Publisher Resources

ISBN: 9780444536853