Hypothetical Bias Over Uncertain Outcomes
Glenn W. Harrison
Georgia State University - J. Mack Robinson College of Business
UCF Economics Working Paper No. 05-04
The evidence for hypothetical bias over uncertain outcomes is reviewed. Consistent with the evidence for deterministic outcomes, it appears that subjects respond differently to risky prospects when they face real economic consequences of their choices instead of hypothetical economic consequences. Implications for contingent valuation survey design and behavioral economics are discussed.
Number of Pages in PDF File: 30
Keywords: Risk aversion, hypothetical bias, experiments
JEL Classification: D81, C91
Date posted: April 20, 2005
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