Stochastic Choice and Preferences for Randomization

Stochastic Choice and Preferences for Randomization

We conduct an experiment in which subjects face the same questions repeated multiple times, with repetitions of two types: 1) following the literature, the repetitions are distant from each other; 2) in a novel treatment, the repetitions are in a row, and subjects are told that the questions will be repeated. We find that a large majority of subjects exhibit stochastic choice in both cases. We ...

Utilities , Preferences and Choice

Online Appendix: Preferences for Flexibility and Randomization under Uncertainty

In this online appendix, we present an extension of Theorem 1. We show that an RUA representation can incorporate the variational preferences of Maccheroni, Marinacci, and Rustichini (2006), which are general enough to incorporate other well-known uncertainty-averse preferences, such as the maxmin preferences of Gilboa and Schmeidler (1989), the multiplier preferences of Hansen and Sargent (200...

Maturity randomization for stochastic control problems

We study a maturity randomization technique for approximating optimal control problems. The algorithm is based on a sequence of control problems with random terminal horizon which converges to the original one. This is a generalization of the so-called Canadization procedure suggested by P. Carr in [2] for the fast computation of American put option prices. In addition to the original applicati...

Eliciting Preferences for Health Insurance in Iran Using Discrete Choice Experiment Analysis

Background The preferences of Iranians concerning the attributes of health insurance benefit packages are not well studied. This study aimed to elicit health insurance preferences among insured people in Iran during 2016.   Methods A mixed method...