A Model of Probabilistic Choice Satisfying First-Order Stochastic Dominance

References

• Aczél J.Lectures on Functional Equations and Their Applications (1966) (Academic Press, London) Google Scholar
• Allais M. Le comportement de l'homme rationnel devant le risque: Critique des postulates et axiomes de l'école Américaine. Econometrica (1953) 21(4):503–546Crossref, Google Scholar
• Blavatskyy P. Stochastic choice under risk. (2006a) . IEW Working Paper 272, Institute for Empirical Research in Economics, University of Zurich, Zurich. http://www.iew.unizh.ch/wp/iewwp272.pdfCrossref, Google Scholar
• Blavatskyy P. Violations of betweenness or random errors? Econom. Lett. (2006b) 91(1):34–38Crossref, Google Scholar
• Blavatskyy P. Stochastic expected utility theory. J. Risk Uncertainty (2007) 34(3):259–286Crossref, Google Scholar
• Blavatskyy P. Stochastic utility theorem. J. Math. Econom. (2008) 44(11):1049–1056Crossref, Google Scholar
• Blavatskyy P. Preference reversals and probabilistic choice. J. Risk and Uncertainty (2009) 39(3):237–250Crossref, Google Scholar
• Blavatskyy P. Common consequence effect with even probability split. (2010) . Working paper, University of Innsbruck, AustriaGoogle Scholar
• Blavatskyy P. Probabilistic choice and stochastic dominance. Econom. Theory. (2011) . ForthcomingGoogle Scholar
• Blavatskyy P., Pogrebna G. Models of stochastic choice and decision theories: Why both are important for analyzing decisions. J. Appl. Econometrics (2010) 25(6):963–986Crossref, Google Scholar
• Buschena D., Zilberman D. Generalized expected utility, heteroscedastic error, and path dependence in risky choice. J. Risk Uncertainty (2000) 20(1):67–88Crossref, Google Scholar
• Butler J. D., Loomes G. C. Imprecision as an account of the preference reversal phenomenon. Amer. Econom. Rev. (2007) 97(1):277–297Crossref, Google Scholar
• Camerer F. C., Edwards W. Recent tests of generalizations of expected utility theory. Utility: Theories, Measurement, and Applications (1992) (Kluwer, Norwell, MA) 207–251Crossref, Google Scholar
• Camerer C., Ho T. Violations of the betweenness axiom and nonlinearity in probability. J. Risk Uncertainty (1994) 8(2):167–196Crossref, Google Scholar
• Falmagne J.-C.Elements of Psychophysical Theory (1985) (Oxford University Press, New York) Google Scholar
• Fechner G.Elements of Psychophysics (1860) (Holt, Rinehart and Winston, New York) Google Scholar
• Fishburn P. A probabilistic expected utility theory of risky binary choices. Internat. Econom. Rev. (1978) 19(3):633–646Crossref, Google Scholar
• Fishburn P.Nonlinear Preference and Utility Theory (1988) (Wheatsheaf Books, Brighton, UK) Google Scholar
• Gneezy U., List J., Wu G. The uncertainty effect: When a risky prospect is valued less than its worst possible outcome. Quart. J. Econom. (2006) 121(4):1283–1309Crossref, Google Scholar
• Gul F., Pesendorfer W. Random expected utility. Econometrica (2006) 71(1):121–146Crossref, Google Scholar
• Harless D., Camerer C. The predictive utility of generalized expected utility theories. Econometrica (1994) 62(6):1251–1289Crossref, Google Scholar
• Hey J. Experimental investigations of errors in decision making under risk. Eur. Econom. Rev. (1995) 39(3/4):633–640Crossref, Google Scholar
• Hey J. Does repetition improve consistency? Experiment. Econom. (2001) 4(1):5–54Crossref, Google Scholar
• Hey J. D., Orme C. Investigating generalisations of expected utility theory using experimental data. Econometrica (1994) 62(6):1291–1326Crossref, Google Scholar
• Holt C., Laury S. Risk aversion and incentive effects. Amer. Econom. Rev. (2002) 92(5):1644–1655Crossref, Google Scholar
• Iverson G. J., Falmagne J.-C. Statistical issues in measurement. Math. Soc. Sci. (1985) 10(2):131–153Crossref, Google Scholar
• Loomes G. Modelling the stochastic component of behaviour in experiments: Some issues for the interpretation of data. Experiment. Econom. (2005) 8(4):301–323Crossref, Google Scholar
• Loomes G., Sugden R. Incorporating a stochastic element into decision theories. Eur. Econom. Rev. (1995) 39(3/4):641–648Crossref, Google Scholar
• Luce R. D.Individual Choice Behavior (1959) (Wiley, New York) Google Scholar
• Luce R. D. The choice axiom after twenty years. J. Math. Psych. (1977) 15(3):215–233Crossref, Google Scholar
• Machina M. Expected utility' analysis without the independence axiom. Econometrica (1982) 50(2):277–323Crossref, Google Scholar
• Regenwetter M., Dana J., Davis-Stober C. Testing transitivity of preferences on two-alternative forced choice data. Frontiers Quant. Psych. Measurement. (2011) . ForthcomingGoogle Scholar
• Rieskamp J., Busemeyer J., Mellers B. Extending the bounds of rationality. J. Econom. Literature (2006) 44(3):631–661Crossref, Google Scholar
• Rydval O., Ortmann A., Prokosheva S., Hertwig R. How certain is the uncertainty effect? Experiment. Econom. (2009) 12(4):473–487Crossref, Google Scholar
• Van de Kuilen G., Wakker P. Learning in the Allais paradox. J. Risk Uncertainty (2006) 33(3):155–164Crossref, Google Scholar
• von Neumann J., Morgenstern O.Theory of Games and Economic Behavior (1944) (Princeton University Press, Princeton, NJ) Google Scholar
• Vuong Q. Likelihood ratio tests for model selection and non-nested hypotheses. Econometrica (1989) 57(2):307–333Crossref, Google Scholar
• Wilcox N., Cox J. C., Harrison G. W. Stochastic models for binary discrete choice under risk: A critical primer and econometric comparison. Research in Experimental Economics, Vol. 12. Risk Aversion in Experiments (2008) (Emerald, Bingley, UK) 197–292Crossref, Google Scholar
• Wilcox N. “Stochastically more risk averse”: A contextual theory of stochastic discrete choice under risk. J. Econometrics. (2011) . ForthcomingCrossref, Google Scholar