Incentives and preference reversals: escape moves and community decisions in experimental economics

Journal of Economic Methodology

Volumn 6, Issue 3, 1999, Pages 351-380

  Tammi, Timo ^a  

^a UNIVERSITY OF EASTERN FINLAND   (Finland)

Author keywords

Duhemian situation; Experimental economics; Incentives; Negotiations; Preference reversals; Scope of economics

Indexed keywords

EID: 85012466362     PISSN: 1350178X     EISSN: 14699427     Source Type: Journal    
DOI: 10.1080/13501789900000023     Document Type: Article

References (50)

1. Binmore, K., 1999. Why Experiment in Economics. Economic Journal 109 (February),: F16–F24.
2. Binrnore, K., 1994. Playing Fair, Cambridge, MA: MIT Press.
3. Bohm, P., 1994. Time Preference and Preference Reversal Among Experienced Subjects: The Effects of Real Payments. Economic Journal, 104: 1370–1378.
4. Camerer, C., 1995. “ Individual Decision Making ”. In The Handbook of Experimental Economics, Edited by: Kagel, J. H., and Roth, A. E., Princeton: Princeton University Press.
5. Casey, J. T., 1991. Organiz-ational Behaviour and Human Decision Processes, 48: 224–251.
6. Casey, J. T., 1994. Buyer's Pricing Behaviour for Risky Alternatives: Encoding Processes and Preference Reversals. Management Science, 40: 730–759.
7. Chu, Y.-P., and Chu, R.-L., 1990. The Subsidence of Preference Reversals in Simplified and Marketlike Experimental Settings: A Note. American Economic Review, 80: 902–911.
8. Cox, J. C., and Epstein, S., 1989. Preference Reversals Without the Independence Axiom. American Economic Review, 79: 408–426.
9. Cox, J. C., and Grether, D. M., 1996. The Preference Reversal Phenomenon: Response Mode. Markets and Incentives’, Economic Theory, 7: 381–406.
10. Davis, D. D., and Holt, C. A., 1993. Experimental Economics, Princeton: Princeton University Press.
11. Friedman, D., 1992. Theory and Misbehavior of First-Price Auctions: Comment. American Economic Review, 82: 1374–1378.
12. Grether, D., and Plott, C., 1979. Economic Theory of Choice and the Preference Reversal Phenomenon. American Economic Review, 69: 623–638.
13. Grether, D., and Plott, C., 1982. Economic Theory of Choice and the Preference Reversal Phenomenon: Reply. American Economic Review, 72: 575
14. Harrison, G. W., 1989. Theory and Misbehavior of First-Price Auctions. American Economic Review, 79: 749–762.
15. Harrison, G. W., 1994. Expected Utility Theory and the Experimentalists. Empirical Economics, 19: 223–254.
16. Hausman, D., 1992. The Inexact and Separate Science of Economics, Cambridge: Cambridge University Press.
17. Holt, C. A., 1986. Preference Reversals and the Independence Axiom. American Economic Review, 76: 508–515.
18. Karni, E., and Safra, Z., 1987. Preference Reversal and the Observability of Preferences by Experimental Methods. Econometrica, 55: 675–685.
19. Kitcher, P., 1993. The Advancement of Science. Science without Legend, Objectivity without Illusions, Oxford: Oxford University Press.
20. Kurz, H., and Salvadori, N., 1997. “ On Critics and Protective Belts ”. In Pluralism in Economics: New Perspectives in the History and Methodology, Edited by: Salanti, A., and Screpanti, E., Cheltenham: Edward Elgar.
21. Lichtenstein, S., and Slovic, P., 1971. Reversals of Preference Between Bids and Choices in Gambling Decisions. Journal of Experimental Psychology, 89: 46–55.
22. Lichtenstein, S., and Slovic, P., 1973. Response-Induced Reversals of Preference in Gambling: An Extended Replication in Las Vegas. Journal of Experimental Psychology, 101: 16–20.
23. Loomes, G., Starmer, C., and Sugden, R., 1989. Preference Reversal: Information Pro-cessing Effect or Rational Non-Transitive Choice?. Economic Journal, 99: 140–151.
24. Loomes, G., Starmer, C., and Sugden, R., 1991. Observing Violations of Transitivity by Experimental Methods. Econometrica, 59: 425–439.
25. Loomes, G., and Sugden, R., 1983. A Rationale for Preference Reversal. American Economic Review, 73: 428–432.
26. Merlo, A., and Schotter, A., 1992. Theory and Misbehavior of First-Price Auctions: Comment’. American Economic Review, 92: 1413–1425.
27. Mulkay, M., 1978. Consensus in Science. Social Science Information, 17: 107–122.
28. Mäki, U., 1993. “ Rationality ”. In Institutions and Economic Methodology, Edited by: Mäki, U., Gustafsson, B., and Knudsen, C., London: Routledge. 1993
29. Mäki, U., 1997. “ The One World and the many Theories ”. In Pluralism in Economics: New Perspectives in the History and Methodology, Edited by: Salanti, A., and Screpanti, E., Cheltenham: Edward Elgar.
30. Pingle, M., and Day, R. H., 1996. Modes of Economizing Behavior: Experimental Evidence. Journal of Economic Behavior and Organization, 29: 191–209.
31. Plott, C. R., 1979. “ The Application of Laboratory Experimental Methods to Public Policy ”. In Collective Decision Making: Applications from Public Choice Theory, Edited by: Russell, C. S., Baltimore: John Hopkins Press.
32. Plott, C. R., 1995. “ The Rational Foundations of Economic Behaviour ”. In IEA Conference 114, Edited by: Arrow, K. J., Colombatto, E., Perlman, M., and Schmidt, C., London: Macmillan Press.
33. Pommerehne, W. W., Schneider, F., and Zweifel, P., 1982. Economic Theory of Choice and the Preference Reversal Phenomenon: A Reexamination. American Economic Review, 72: 569–574.
34. Reilly, R. J., 1982. Preference Reversal: Further Evidence and Some Suggested Modifications in Experimental Design. American Economic Review, 72: 576–584.
35. Rescher, N., 1993. Pluralism. Against the Demand for Consensus, Oxford: Clarendon Press.
36. Segal, U., 1988. Does the Preference Reversal Phenomenon Necessarily Contradict the Independence Axiom?'. American Economic Review, 78: 233–236.
37. Slovic, P., 1975. Choice Between Equally Valued Alternatives. Journal of Experimental Psychology: Human Perception and Performance, 1: 280–287.
38. Slovic, P., and Lichtenstein, S., 1983. Preference Reversals: A Broader Perspective. American Economic Review, 73: 596–605.
39. Smith, V., 1976. Experimental Economics: Induced Value Theory. American Economic Review, 66: 274–279.
40. Smith, V., 1980. “ Relevance of Laboratory Experiments to Testing Resource Allocation Theory ”. In Evaluation of Econometric Models, Edited by: Kmenta, J., and Ramsey, J., New York: Academic Press.
41. Smith, V., 1982. Microeconomic Systems as an Experimental Science. American Economic Review, 72: 923–955.
42. Smith, V., and Walker, J., 1993. Monetary Rewards and Decision Cost in Experimental Economics. Economic Inquiry, 31: 245–261.
43. Starmer, C., 1999a. Experimental Economics: Hard Science or Wasteful Tinkering?'. Economic Journal 109, February: 5–15.
44. Starmer, C., 1999b. Experiments in Economics: Should We Trust the Dismal Scientists in White Coats?'. Journal of Economic Methodology, 6: 1–30.
45. Starmer, C., and Sugden, R., 1991. Does the Random-Lottery Incentive System Elicit True Preferences? An Experimental Investigation. American Economic Review, 81: 971–978.
46. Thaler, R. H., 1987. “ The Psychology of Choice and the Assumptions of Economics ”. In Laboratory Experimentation in Economics: Six Point of View, Edited by: Roth, A. E., Cambridge: Cambridge University Press.
47. Tversky, A., Slovic, P., and Kahneman, D., 1990. The Causes of Preference Reversal. American Economic Review, 80: 204–217.
48. Tversky, A., and Thaler, R., 1990. Anomalies. Preference Reversals. Journal of Economic Perspectives, 4: 201–211.
49. Wedell, D. H., and Bockenholt. 1990. Moderation of Preference Reversals in the Long Run. Journal of Experimental Psychology, Human Perception and Performance, 16: 429–438.
50. Wilde, L., 1980. “ On the Use of Laboratory Experiments in Economics ”. In Philosophy in Economics, Edited by: Pitt, J. C., Dordrecht: D. Reidel Publishing Company.$eref.