Contextual deliberation and the choice-valuation preference reversal

Liang Guo

doi:10.1016/j.jet.2021.105285

Contextual deliberation and the choice-valuation preference reversal

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

Overview

2 Scopus Citations

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Author(s)

Liang Guo

Detail(s)

Original language	English
Article number	105285
Journal / Publication	Journal of Economic Theory
Volume	195
Online published	27 May 2021
Publication status	Published - Jul 2021
Externally published	Yes

Link(s)

DOI	DOI https://doi.org/10.1016/j.jet.2021.105285 Final Published version
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Attachment(s)	Documents 159367225.pdf Final Published version, 678 KB, PDF Publisher's Copyright Statement This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/
Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-85106929010&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(a9735490-78e1-4cfb-b1d2-1d35b80304df).html

Abstract

Revealed preferences between lotteries can be asymmetrically reversed across choice and valuation. The ongoing debate is whether the procedure-invariance principle is violated. This research presents a parsimonious theory to reconcile asymmetric preference reversals with procedure invariance. When risk attitude is ex ante imperfectly known, preference-eliciting procedures can endogenously influence revealed preferences through affecting the incentive for information retrieval/acquisition (i.e., deliberation). As predicted, when lottery pairing was known, experiment participants exhibited substantially less asymmetric reversals by stating mean-preserving and more dispersed valuations. Therefore, the endogeneity of asymmetric preference reversals can be substantiated. © 2021 The Author(s)