De Gustibus Non Est Disputandum: An Experimental Investigation
34 Pages Posted: 25 Oct 2014
The goal of this paper is to examine stability in preferences using the Stigler-Becker state-dependent framework. Using a randomized intervention that changes the opportunity sets of individuals we construct a unique panel data from an artefactual field experiment and evaluate whether the change in the state space influences our selected indicators of preferences: risk, competitiveness, and confidence. We find that there is considerable heterogeneity of preferences across individuals at a point in time; risk and competitive preferences inter-temporally are consistent with state-dependent preferences, while measures of confidence seem to depend on past experiences.
Keywords: preference stability, state contingent preferences, artefactual field experiment
JEL Classification: C9, D01, D03
Suggested Citation: Suggested Citation