Economics Seminar（2018-21）

Topic: Multiple-Switching Behavior in the Elicitation of Risk Preferences

Speaker: Bin Miao,Shanghai University of Finance and Economics

Time: Tuesday,Dec.11, 13:30-15:00p.m

Place: Room 217, Guanghua Building 2

Abstract:

While it is commonly observed that subjects switch multiple times in the choice list elicitation of risk preference, little has been done to systematically examine the nature of this multiple switching behavior (MSB). We conduct an experiment to investigate MSB in two types of choice lists including one with both options as lotteries and another with one of the two option as sure amounts, and observe a substantially higher frequency of MSB in the former than in the latter. In addition, we find that subjects with higher frequency of MSB are more likely to deliberately switch when two options are repeated multiple times as in Agranov and Ortoleva (2016). Our results support models of deliberate randomization rather than models of random utility, and further enable a discrimination among models of deliberate randomization.

Introduction:

Dr. Miao Bin is currently a Professor at Shanghai University of Finance and Economics. Dr. Miaois interested in using methodologies fromexperimental economics and behavioral economicsto understandindividualdecision makingin variousenvironments, including risk, ambiguity, and time. Dr. Miao has published in economics journals includingEconometrica,American Economic ReviewandEconomic Theory.

Your participation is warmly welcomed!