Citation

Bateman I, Day B, Loomes G, Sugden R. J. Risk Uncertain. 2007; 34(1): 49-66.

Affiliation

Univ East Anglia, Sch Econ, Norwich NR4 7TJ, Norfolk, England; Univ East Anglia, Sch Environm Sci, Norwich NR4 7TJ, Norfolk, England

Copyright

(Copyright © 2007, Holtzbrinck Springer Nature Publishing Group)

DOI

10.1007/s11166-006-9003-4

PMID

unavailable

Abstract

This paper reports two experiments which examine the use of ranking methods to elicit 'certainty equivalent' values. It investigates whether such methods are able to eliminate the disparities between choice and value which constitute the 'preference reversal phenomenon' and which thereby pose serious problems for both theory and policy application. The results show that ranking methods are vulnerable to distorting effects of their own, but that when such effects are controlled for, the preference reversal phenomenon, previously so strong and striking, is very considerably attenuated.

Language: en