Hypothetical Bias Over Uncertain Outcomes

Harrison, Glenn W.

doi:10.2139/ssrn.698501

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Hypothetical Bias Over Uncertain Outcomes

UCF Economics Working Paper No. 05-04

30 Pages Posted: 20 Apr 2005

See all articles by Glenn W. Harrison

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: Suggested Citation

Harrison, Glenn William, 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