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An expected utility maximizer walks into a bar...


Burghart, Daniel R; Glimcher, Paul W; Lazzaro, Stephanie C (2013). An expected utility maximizer walks into a bar... Journal of Risk and Uncertainty, 46(3):215-246.

Abstract

We conducted field experiments at a bar to test whether blood alcohol concentration (BAC) correlates with violations of the generalized axiom of revealed preference (GARP) and the independence axiom. We found that individuals with BACs well above the legal limit for driving adhere to GARP and independence at rates similar to those who are sober. This finding led to the fielding of a third experiment to explore how risk preferences might vary as a function of BAC. We found gender-specific effects: Men did not exhibit variations in risk preferences across BACs. In contrast, women were more risk averse than men at low BACs but exhibited increasing tolerance towards risks as BAC increased. Based on our estimates, men and women's risk preferences are predicted to be identical at BACs nearly twice the legal limit for driving. We discuss the implications for policy-makers

Abstract

We conducted field experiments at a bar to test whether blood alcohol concentration (BAC) correlates with violations of the generalized axiom of revealed preference (GARP) and the independence axiom. We found that individuals with BACs well above the legal limit for driving adhere to GARP and independence at rates similar to those who are sober. This finding led to the fielding of a third experiment to explore how risk preferences might vary as a function of BAC. We found gender-specific effects: Men did not exhibit variations in risk preferences across BACs. In contrast, women were more risk averse than men at low BACs but exhibited increasing tolerance towards risks as BAC increased. Based on our estimates, men and women's risk preferences are predicted to be identical at BACs nearly twice the legal limit for driving. We discuss the implications for policy-makers

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:National licences > 142-005
Dewey Decimal Classification:330 Economics
Language:English
Date:1 June 2013
Deposited On:04 Jul 2019 15:11
Last Modified:24 Sep 2019 23:47
Publisher:Springer
ISSN:0895-5646
OA Status:Green
Publisher DOI:https://doi.org/10.1007/s11166-013-9167-7
Related URLs:https://www.swissbib.ch/Search/Results?lookfor=nationallicencespringer101007s1116601391677 (Library Catalogue)

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