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On the measurement of strength of preference in units of money
Journal article   Open access   Peer reviewed

On the measurement of strength of preference in units of money

D.J. Butler, A. Isoni, G. Loomes and D. Navarro-Martinez
Economic Record, Vol.90(S1), pp.1-15
2014
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Abstract

We report an experimental study that aims to elicit monetary measures of strength of preference in choices involving pairs of risky prospects. Despite extensive testing to refine the instruments used, we find that these money measures are systematically biased upwards relative to subsequent binary choices. We discuss possible reasons for this bias and its broader implications.

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6 Social Sciences
6.122 Economic Theory
6.122.1287 Risk Preferences
Web Of Science research areas
Economics
ESI research areas
Economics & Business
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