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Article
Pre-play Learning and the Preference Reversal Phenomenon
Economics Working Papers (2002–2016)
  • Younjun Kim, Southern Connecticut State University
  • Elizabeth Hoffman, Iowa State University
Document Type
Working Paper
Publication Date
1-1-2018
Working Paper Number
WP #15015
Abstract

Elicited preference rankings for two lotteries are typically inconsistent in choice and price. We test whether pre-play learning makes preference rankings consistent. Pre-play learning denotes ex-ante lottery learning, where subjects observe playing lotteries before making decisions. We find that pre-play learning makes the average selling prices for the p-bet, of subjects who choose the p-bet, higher than their average selling prices for the $-bet. However, pre-play learning is not strong enough to equalize the rates of standard and non-standard reversals, although pre-play learning reduces the rate of standard reversals.

File Format
application/pdf
Length
13 pages
Citation Information
Younjun Kim and Elizabeth Hoffman. "Pre-play Learning and the Preference Reversal Phenomenon" (2018)
Available at: http://works.bepress.com/elizabeth-hoffman/2/