| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w21792 |
| 来源ID | Working Paper 21792 |
| Controlling for the Compromise Effect Debiases Estimates of Risk Preference Parameters | |
| Jonathan P. Beauchamp; Daniel J. Benjamin; Christopher F. Chabris; David I. Laibson | |
| 发表日期 | 2015-12-14 |
| 出版年 | 2015 |
| 语种 | 英语 |
| 摘要 | The compromise effect arises when options near the "middle" of a choice set are more appealing. The compromise effect poses conceptual and practical problems for economic research: by influencing choices, it distorts revealed preferences, biasing researchers' inferences about deep (i.e., domain general) preferences. We propose and estimate an econometric model that disentangles and identifies both deep preferences and the context-dependent compromise effect. We demonstrate our method using data from an experiment with 550 participants who made choices over lotteries from multiple price lists. Following prior work, we manipulate the compromise effect by varying the middle options of each multiple price list and then estimate risk preferences without modelling the compromise effect. These naïve parameter estimates are not robust: they change as the compromise effect is manipulated. To eliminate this bias, we incorporate the compromise effect directly into our econometric model. We show that this method generates robust estimates of risk preference parameters that are no longer sensitive to compromise-effect manipulations. This method can be applied to other settings that exhibit the compromise effect. |
| 主题 | Other ; History of Economic Thought ; Microeconomics ; Behavioral Economics ; Households and Firms ; Economics of Information ; Financial Economics ; Portfolio Selection and Asset Pricing |
| URL | https://www.nber.org/papers/w21792 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/579466 |
| 推荐引用方式 GB/T 7714 | Jonathan P. Beauchamp,Daniel J. Benjamin,Christopher F. Chabris,et al. Controlling for the Compromise Effect Debiases Estimates of Risk Preference Parameters. 2015. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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