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Field
Abstract
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Before
The primary purpose of this experiment is to test the theoretical predictions of our paper which are all based on a rich mixture sets. Imposing standard axis on this flexible choice domain gives rise to a parsimonious representation of source recursive expected utility (SREU). Under the resulting SREU, if a decision-maker exhibits source preference (a consistent preference for equivalent lotteries, differing only in the source of resolution), then the decision-maker prefers more uncertainty being resolved by the preferred source. We refer to this as preference for decisiveness of the preferred source (PDPS). The hypothesis is to test whether those with source preference also have PDPS.
H0: Random behaviour i.e. proportion of subjects satisfying PDPS is 50\%
H1: Proportion of subjects who satisfy PDPS is more than the proportion of subjects who do not i.e. proportion of subjects satisfying PDPS is greater than 50%
Another hypothesis we can test is to see whether we observe more PDPS for those who prefer to flip the cards themselves, compared to their partner flipping to see if this is consistent with the literature on the illusion/locus of control.
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After
The primary purpose of this experiment is to test the theoretical predictions of our paper which are all based on rich mixture sets. Imposing standard axioms on this flexible choice domain gives rise to a parsimonious representation of source recursive expected utility (SREU). Under the resulting SREU, if a decision-maker exhibits source preference (a consistent preference for equivalent lotteries, differing only in the source of resolution), then the decision-maker prefers more uncertainty being resolved by the preferred source. We refer to this as preference for decisiveness of the preferred source (PDPS). The hypothesis is to test whether those with source preference also have PDPS.
H0: Random behaviour i.e. proportion of subjects satisfying PDPS is 50\%
H1: Proportion of subjects who satisfy PDPS is more than the proportion of subjects who do not i.e. proportion of subjects satisfying PDPS is greater than 50%
Another hypothesis we can test is to see whether we observe more PDPS for those who prefer to flip the cards themselves, compared to their partner flipping to see if this is consistent with the literature on the illusion/locus of control.
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