Preference Reversals and the Analysis of Income Distributions

41 Pages Posted: 21 Feb 2008

See all articles by Yoram Amiel

Yoram Amiel

Ruppin Academic Center - Department of Economics and Management

Frank Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)

Leima Davidovitz

affiliation not provided to SSRN

Avraham Polovin

affiliation not provided to SSRN

Date Written: March 2003

Abstract

It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the parallel social-choice situation. Here decisions are to be made between a distribution with a small group of very high-income people. Results from a number of experimental designs are analysed.

JEL Classification: C13, D63

Suggested Citation

Amiel, Yoram and Cowell, Frank A. and Davidovitz, Leima and Polovin, Avraham, Preference Reversals and the Analysis of Income Distributions (March 2003). LSE STICERD Research Paper No. 66. Available at SSRN: https://ssrn.com/abstract=1094855

Yoram Amiel (Contact Author)

Ruppin Academic Center - Department of Economics and Management ( email )

Emek Hefer 40250
Israel

Frank A. Cowell

London School of Economics & Political Science (LSE) - Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 (0)171-955 7277 (Phone)
+44 (0)171-242 2357 (Fax)

Leima Davidovitz

affiliation not provided to SSRN

No Address Available

Avraham Polovin

affiliation not provided to SSRN

No Address Available

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