Hypothetical Bias Over Uncertain Outcomes

UCF Economics Working Paper No. 05-04

30 Pages Posted: 20 Apr 2005  

Glenn W. Harrison

Georgia State University - J. Mack Robinson College of Business

Date Written: March 2005

Abstract

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.

Keywords: Risk aversion, hypothetical bias, experiments

JEL Classification: D81, C91

Suggested Citation

Harrison, Glenn W., Hypothetical Bias Over Uncertain Outcomes (March 2005). UCF Economics Working Paper No. 05-04. Available at SSRN: https://ssrn.com/abstract=698501 or http://dx.doi.org/10.2139/ssrn.698501

Glenn William Harrison (Contact Author)

Georgia State University - J. Mack Robinson College of Business ( email )

P.O. Box 4050
Atlanta, GA 30303-3083
United States
407-489-3088 (Phone)
253-830-7636 (Fax)

HOME PAGE: http://www.cear.gsu.edu/

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