Rationality and Dynamic Consistency Under Risk and Uncertainty
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2.5.6 Experimental Tests
2.5.6.1 Potential Challenges for Dynamic Choice Experiments
Designing and implementing dynamic choice experiments is complex and challenging.
It demands a lot of creativity to avoid introducing biases which may obscure the inter-
pretation of the findings. We highlight a few difficulties here.
One major problem is that risk-taking behavior may change as a decision tree unfolds.
Static choice may be influenced by numerous empirically well documented phenom-
ena such as regret or disappointment, reference points and loss aversion, optimism and
pessimism,
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