Preference reversals and the analysis of income distributions
Amiel, Y., Cowell, F.
, Davidovitz, L. & Polovin, A.
(2003).
Preference reversals and the analysis of income distributions.
(Distributional Analysis Research Programme; DARP 66 66).
Suntory and Toyota International Centres for Economics and Related Disciplines.
, Davidovitz, L. & Polovin, A.
(2003).
Preference reversals and the analysis of income distributions.
(Distributional Analysis Research Programme; DARP 66 66).
Suntory and Toyota International Centres for Economics and Related Disciplines.
It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the parallel social-choice situation. Here decisions are to be made between a distribution with a small group of very highincome people. Results from a number of experimental designs are analysed.