Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/301292 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11166
Publisher: 
CESifo GmbH, Munich
Abstract: 
We investigate whether violations of canonical axioms of choice under risk are mistakes or a manifestation of true preferences. First, we elicit axiom and gamble preferences and then allow subjects to revise their potentially conflicting preferences. Among the behavioral patterns that allow for a clear-cut interpretation on the decision level, we find that roughly 70% of axiom viola-tions are intentional whereas only 30% are mistakes. On the subject level we can clearly categorize almost half of our subjects. Among those, roughly 24%are rational expected utility maximizers, 24% make occasional mistakes, and 52% refute the normative value of these axioms.
Subjects: 
axiomatic rationality
choice under risk
context-dependent preferences
mistakes
regret theory
JEL: 
C91
D01
D81
D91
Document Type: 
Working Paper
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