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on Discrete Choice Models |
| By: | Dimitrov, Dinko; Mukherjee, Saptarshi; Muto, Nozomu |
| Abstract: | When encountering a set of alternatives displayed in the form of a list, the decision maker usually determines a particular alternative, after which she stops checking the remaining ones, and chooses an alternative from those observed so far. We present a framework in which both decision problems are explicitly modeled, and axiomatically characterize a stop-and-choose rule which unifies position-biased successive choice and satisficing choice. |
| Keywords: | choice function, list, satisficing choice, stopping decision, successive choice |
| JEL: | D00 D11 D83 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:econdp:2013-02&r=dcm |
| By: | Stephen Hansen; Michael McMahon |
| Abstract: | In many areas of economics there is a growing interest in how expertise and preferences drive individual and group decision making under uncertainty. Increasingly, we wish to estimate such models to quantify which of these drive decision making. In this paper we propose a new channel through which we can empirically identify expertise and preference parameters by using variation in decisions over heterogeneous priors. Relative to existing estimation approaches, our "Prior-Based Identification" extends the possible environments which can be estimated, and also substantially improves the accuracy and precision of estimates in those environments which can be estimated using existing methods. |
| Keywords: | Bayesian decision making, expertise, preferences, estimation |
| JEL: | D72 D81 C13 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:683&r=dcm |
| By: | Jäckle, Annette; Lynn, Peter; Burton, Jonathan |
| Abstract: | To date, face-to-face interviewing has been the primary mode of data collection for Understanding Society. There may be advantages in instead collecting data online where possible. Primarily, this should bring a reduction in data collection costs. There are, however, concerns that response rates could fall if the request to participate is no longer made in person and that measurement could differ between modes. Wave 5 of the Innovation Panel incorporated an experimental design comparing a mixed mode design (web plus face-to-face follow-up) with a standard face-to-face design. This paper presents initial findings from the experiment, primarily with regard to participation rates. |
| Date: | 2013–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:ese:ukhlsp:2013-03&r=dcm |
| By: | André Lapied (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS); Thomas Rongiconi (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS) |
| Abstract: | The "General-Self-Control-Preference" model introduced by Noor and Takeoka (2010) allows to take into account non linear costs of Self-Control. In this paper we extend this theory to situations in which a decision-maker faces ambiguity. We focus on the fact that lack of information is a potential source of temptation. Indeed lack of information doesn't allow the decision-maker to put a probability measure on uncertain events. Our basic hypothesis is that, in ambiguous situation, individuals are not confident enough about their beliefs and could therefore be tempted to use other beliefs to evaluate the alternatives in the second period. We study a two period model where ex ante dominated choice may tempt the decision-maker in the second period. Individuals have preferences over sets of alternatives that represent second period choices. We provide a Choice-Theoretic model where the ex-ante belief is a probability measure whereas ex post belief is a Choquet-capacity, in order to take into account individual attitudes towards ambiguity in the second period. |
| Keywords: | Temptation, Self-control, Ambiguity, Choquet-Expected-Utility, Comonotonic-Temptation-Independence. |
| JEL: | D81 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1316&r=dcm |
| By: | Kuhn, Michael A. (University of California, San Diego); Kuhn, Peter J. (University of California, Santa Barbara); Villeval, Marie Claire (CNRS, GATE) |
| Abstract: | We experimentally manipulate two aspects of the cognitive environment, cognitive depletion and recent sugar intake, and estimate their effects on individuals' time preferences in a way that allows us to identify the structural parameters of a simple (α,β,δ) intertemporal utility function for each person. We find that individuals exposed to a prior cognitive load, individuals who consumed a sugared drink, and individuals who consumed a sugar-free drink all defer more income than a control group exposed to none of these conditions. Structural estimates show that all three effects are driven entirely by increases in the intertemporal price elasticity parameter (α). Together, our results suggest that at least for complex economic decisions like intertemporal financial choice, the ‘attention/focusing' effect of both prior cognitively demanding activity and prior assignment of a primary reward can improve decision-making. |
| Keywords: | time preferences, self-control, depletion, sucrose, experiment |
| JEL: | C91 D90 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7273&r=dcm |