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“Certain-uncertain” inconsistency within the basic experimental procedures of behavioral economics

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  • Harin, Alexander

Abstract

Old problems of the mathematical description of the economical behavior of a man are briefly reviewed. They are the comparison of choices of a man between uncertain and sure games and the radically different behavior of a man in different domains. The proposed solution of the problems consists in the purely mathematical method and models and is briefly reviewed in the Appendix. In the present paper the main attention is paid to the analysis of the experimental support of this possible solution. The generally accepted random incentive experimental procedures are discussed. A “certain-uncertain” inconsistency between the certain type of the choices and the uncertain type of the incentives is revealed and analyzed.

Suggested Citation

  • Harin, Alexander, 2024. "“Certain-uncertain” inconsistency within the basic experimental procedures of behavioral economics," MPRA Paper 121756, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:121756
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    References listed on IDEAS

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    More about this item

    Keywords

    utility; prospect theory; experiment; incentive; random-lottery incentive system; Prelec; probability weighting function;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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