UCF Economics Working Paper No. 05-04
30 Pages Posted: 20 Apr 2005
Date Written: March 2005
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: 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