Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries
Sürücü O, Brangewitz S, Mir Djawadi B (2017) Center for Mathematical Economics Working Papers; 574.
Bielefeld: Center for Mathematical Economics.
Diskussionspapier
| Veröffentlicht | Englisch
Download
![Open access file OA](https://pub.uni-bielefeld.de/images/access_open.png)
Autor*in
Sürücü, OktayUniBi;
Brangewitz, SonjaUniBi;
Mir Djawadi, Behnud
Abstract / Bemerkung
The asymmetric dominance effect refers to the phenomenon according to which the choice
probability of an alternative increases when an inferior alternative - the decoy - is included
into the choice set. The objective of this experimental study is twofold. First, we investigate
the asymmetric dominance effect on two-outcome lotteries with almost equal expected values.
We find that the impact of a decoy on low-variance lotteries (LVLs) is much higher than on
high-variance lotteries (HVLs). Second, we examine the asymmetric dominance effect in the
presence of two decoys. While the asymmetric dominance effect persists when the choice
set includes two decoys, the effect is not always further enhanced compared to the setting
with one decoy and again much stronger for LVLs than for HVLs. Controlling for subjects’
degrees of risk aversion, we find support for consistency between individual risk preferences
and choice behavior among the lotteries. However, we observe decoy effects of equal strength
irrespective of the subjects’ degree of risk aversion. Thus, our analysis indicates that to a
substantial extent the presence of decoys subtly makes decision-makers choose against their
risk preferences by favoring lotteries that entail risks contrary to their elicited individual
risk-taking profile.
Stichworte
Asymmetric dominance effect;
decoy effects;
multiple decoys;
risk aversion;
individual decision making;
experimental economics
Erscheinungsjahr
2017
Serientitel
Center for Mathematical Economics Working Papers
Band
574
Seite(n)
24
ISSN
0931-6558
Page URI
https://pub.uni-bielefeld.de/record/2910671
Zitieren
Sürücü O, Brangewitz S, Mir Djawadi B. Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries. Center for Mathematical Economics Working Papers. Vol 574. Bielefeld: Center for Mathematical Economics; 2017.
Sürücü, O., Brangewitz, S., & Mir Djawadi, B. (2017). Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries (Center for Mathematical Economics Working Papers, 574). Bielefeld: Center for Mathematical Economics.
Sürücü, Oktay, Brangewitz, Sonja, and Mir Djawadi, Behnud. 2017. Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries. Vol. 574. Center for Mathematical Economics Working Papers. Bielefeld: Center for Mathematical Economics.
Sürücü, O., Brangewitz, S., and Mir Djawadi, B. (2017). Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries. Center for Mathematical Economics Working Papers, 574, Bielefeld: Center for Mathematical Economics.
Sürücü, O., Brangewitz, S., & Mir Djawadi, B., 2017. Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries, Center for Mathematical Economics Working Papers, no.574, Bielefeld: Center for Mathematical Economics.
O. Sürücü, S. Brangewitz, and B. Mir Djawadi, Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries, Center for Mathematical Economics Working Papers, vol. 574, Bielefeld: Center for Mathematical Economics, 2017.
Sürücü, O., Brangewitz, S., Mir Djawadi, B.: Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries. Center for Mathematical Economics Working Papers, 574. Center for Mathematical Economics, Bielefeld (2017).
Sürücü, Oktay, Brangewitz, Sonja, and Mir Djawadi, Behnud. Asymmetric dominance effect with multiple decoys for low- and high-variance lotteries. Bielefeld: Center for Mathematical Economics, 2017. Center for Mathematical Economics Working Papers. 574.
Alle Dateien verfügbar unter der/den folgenden Lizenz(en):
Copyright Statement:
Dieses Objekt ist durch das Urheberrecht und/oder verwandte Schutzrechte geschützt. [...]
Volltext(e)
Name
IMW_working_paper_574.pdf
283.99 KB
Access Level
![Open access file OA](https://pub.uni-bielefeld.de/images/access_open.png)
Zuletzt Hochgeladen
2019-09-06T09:18:48Z
MD5 Prüfsumme
3a812185472300a7d0fa37555dd2a63c