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Title: When Choices Are Mistakes
Using a laboratory experiment, we identify whether decision-makers consider it a mistake to violate canonical choice axioms. To do this, we incentivize subjects to report axioms they want their decisions to satisfy. Then, subjects make lottery choices which might conflict with their axiom preferences. In instances of conflict, we give subjects the opportunity to re-evaluate their decisions. We find that many individuals want to follow canonical axioms and revise their choices to be consistent with the axioms. In a shorter online experiment, we show correlations of mistakes with response times and measures of cognition. (JEL C91, D12, D44, D91)  more » « less
Award ID(s):
2049749
PAR ID:
10338692
Author(s) / Creator(s):
;
Date Published:
Journal Name:
American Economic Review
Volume:
112
Issue:
7
ISSN:
0002-8282
Page Range / eLocation ID:
2237 to 2268
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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