Kontek, Krzysztof (2010): Classifying Behaviors in Risky Choices.
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This paper presents a nonparametric approach to classification of data from lottery experiments. Using very basic mathematical tools the paper endeavors to answer the questions: How to determine the “average” subject in a group? How to find a subject presenting the most similar behavior to a given one? How to detect outlier subject(s)? How to classify behaviors by their dissimilarity from the perfectly rational decision maker? How to rank subjects by risk attitudes? How to cluster subjects? This paper demonstrates that the answer to all of these questions may be found non-parametrically, without the use of any specific model.
|Item Type:||MPRA Paper|
|Original Title:||Classifying Behaviors in Risky Choices|
|Keywords:||Lottery experiments, Certainty Equivalents, Risk Attitude, Cluster Analysis, Nonparametric Methods, Relative Utility Function.|
|Subjects:||D - Microeconomics > D0 - General > D03 - Behavioral Economics; Underlying Principles
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
C - Mathematical and Quantitative Methods > C0 - General > C02 - Mathematical Methods
C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology; Computer Programs > C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
|Depositing User:||Krzysztof Kontek|
|Date Deposited:||13. Jul 2010 08:39|
|Last Modified:||14. Feb 2013 01:16|
1. Dunham, M., (2002). Data Mining: Introductory and Advanced Topics. Prentice Hall.
2. Hey, J. D., Morone, A., Schmidt, U., (2009). Noise and bias in eliciting preferences. J. Risk & Uncertainty, 39, pp 213-235.
3. Kontek, K., (2010). Multi-Outcome Lotteries: Prospect Theory vs. Relative Utility. Available at SSRN: http://ssrn.com/abstract=1617225 and as MPRA Working Paper http://mpra.ub.uni-muenchen.de/22947/
4. Traub, S., Schmidt, U., (2009). An Experimental Investigation of the Disparity between WTA and WTP for Lotteries, Theory & Decision, 66, pp 229-262.
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