Preference measurement and manipulation in experimental economics

Hande Erkut, Ernesto Reuben

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

One of the foundations of economic theory is that the choices individuals make are driven by their preferences. Importantly for economic modeling, preferences are commonly assumed to be rationalizable by a utility function. The predictive ability of most microeconomic models relies on properly quantifying these preferences and their rationalizability. Hence, this is a challenging but necessary task. In this chapter, we discuss methodologies used in experimental economics to measure preference and their degree of consistency with utility maximization. Topics include the measurement of risk, intertemporal, and social preferences. Moreover, we discuss the effects of manipulating revealed preferences though framing and the revelation of normative information.

Original languageEnglish (US)
Title of host publicationHandbook of Research Methods and Applications in Experimental Economics
PublisherEdward Elgar Publishing Ltd.
Pages39-56
Number of pages18
ISBN (Electronic)9781788110563
ISBN (Print)9781788110556
DOIs
StatePublished - Jan 1 2019

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Fingerprint Dive into the research topics of 'Preference measurement and manipulation in experimental economics'. Together they form a unique fingerprint.

Cite this