- A-Z
- Jena Economic Resea...
- Volume 10
- Risk and punishment...
Risk and punishment revisited -
Errors in variables and in the lab
- Autor(in)
- Erschienen
- 27. Juli 2016
- Nummer des Discussion-Papers
-
2016-015
- Schlagwort(e)
-
Bayesian inference
errors in variables
lab experiment
public good
Risk
- Zusammenfsg.
-
We provide an example for an errors in variables problem which might be often neglected but which is quite common in lab experimental practice: In one task, attitude towards risk is measured, in another task participants behave in a way that can possibly be explained by their risk attitude. How should we deal with inconsistent behaviour in the risk task? Ignoring these observations entails two biases: An errors in variables bias and a selection bias. We argue that inconsistent observations should be exploited to address the errors in variables problem, which can easily be done within a Bayesian framework.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- C91 - Laboratory, Individual Behavior ; D43 - Oligopoly and Other Forms of Market Imperfection ; L41 - Monopolization; Horizontal Anticompetitive Practices