Testing for salience effects in choices under risk

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Standard

Testing for salience effects in choices under risk. / Nielsen, Carsten Søren; Sebald, Alexander Christopher; Sørensen, Peter Norman.

I: Review of Economics and Statistics, 2024.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Nielsen, CS, Sebald, AC & Sørensen, PN 2024, 'Testing for salience effects in choices under risk', Review of Economics and Statistics. https://doi.org/10.1162/rest_a_01307

APA

Nielsen, C. S., Sebald, A. C., & Sørensen, P. N. (2024). Testing for salience effects in choices under risk. Review of Economics and Statistics. https://doi.org/10.1162/rest_a_01307

Vancouver

Nielsen CS, Sebald AC, Sørensen PN. Testing for salience effects in choices under risk. Review of Economics and Statistics. 2024. https://doi.org/10.1162/rest_a_01307

Author

Nielsen, Carsten Søren ; Sebald, Alexander Christopher ; Sørensen, Peter Norman. / Testing for salience effects in choices under risk. I: Review of Economics and Statistics. 2024.

Bibtex

@article{1a2e35b25c6549d387687af96e8ec911,
title = "Testing for salience effects in choices under risk",
abstract = "We construct and run an experiment to test the most basic choice effect pre-dicted by Salience Theory. Subjects allocate wealth between a risky and a safeinvestment. While we vary an apparent payoff ratio to influence salience, treat-ments have economically equivalent consequences. Most other theories of behaviorthen predict zero effect. Our experimental findings are strongly consistent withthe behavioral implication of a continuous version of Salience Theory. We providea novel structural estimate on the strength of salience. In our setting, increasingthe relative payoff contrast by one percent is equivalent to an increased odds ratioby about 0.4 percent.",
author = "Nielsen, {Carsten S{\o}ren} and Sebald, {Alexander Christopher} and S{\o}rensen, {Peter Norman}",
year = "2024",
doi = "10.1162/rest_a_01307",
language = "English",
journal = "Review of Economics and Statistics",
issn = "0034-6535",
publisher = "MIT Press",

}

RIS

TY - JOUR

T1 - Testing for salience effects in choices under risk

AU - Nielsen, Carsten Søren

AU - Sebald, Alexander Christopher

AU - Sørensen, Peter Norman

PY - 2024

Y1 - 2024

N2 - We construct and run an experiment to test the most basic choice effect pre-dicted by Salience Theory. Subjects allocate wealth between a risky and a safeinvestment. While we vary an apparent payoff ratio to influence salience, treat-ments have economically equivalent consequences. Most other theories of behaviorthen predict zero effect. Our experimental findings are strongly consistent withthe behavioral implication of a continuous version of Salience Theory. We providea novel structural estimate on the strength of salience. In our setting, increasingthe relative payoff contrast by one percent is equivalent to an increased odds ratioby about 0.4 percent.

AB - We construct and run an experiment to test the most basic choice effect pre-dicted by Salience Theory. Subjects allocate wealth between a risky and a safeinvestment. While we vary an apparent payoff ratio to influence salience, treat-ments have economically equivalent consequences. Most other theories of behaviorthen predict zero effect. Our experimental findings are strongly consistent withthe behavioral implication of a continuous version of Salience Theory. We providea novel structural estimate on the strength of salience. In our setting, increasingthe relative payoff contrast by one percent is equivalent to an increased odds ratioby about 0.4 percent.

U2 - 10.1162/rest_a_01307

DO - 10.1162/rest_a_01307

M3 - Journal article

JO - Review of Economics and Statistics

JF - Review of Economics and Statistics

SN - 0034-6535

ER -

ID: 382550408