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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
Rationality and Dynamic Consistency Under Risk and Uncertainty
79
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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Publisher Resources

ISBN: 9780444536853