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External and internal consistency of choices made in convex time budgets

We evaluate data on choices made from convex time budgets (CTB) in Andreoni and Sprenger (Am Econ Rev 102(7):3333–3356, 2012a) and Augenblick et al. (Q J Econ 130(3):1067–1115, 2015), two influential studies that proposed and applied this experimental technique. We use the weak axiom of revealed pre...

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Autores principales: Chakraborty, Anujit, Calford, Evan M., Fenig, Guidon, Halevy, Yoram
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2017
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5545082/
https://www.ncbi.nlm.nih.gov/pubmed/28824286
http://dx.doi.org/10.1007/s10683-016-9506-z
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author Chakraborty, Anujit
Calford, Evan M.
Fenig, Guidon
Halevy, Yoram
author_facet Chakraborty, Anujit
Calford, Evan M.
Fenig, Guidon
Halevy, Yoram
author_sort Chakraborty, Anujit
collection PubMed
description We evaluate data on choices made from convex time budgets (CTB) in Andreoni and Sprenger (Am Econ Rev 102(7):3333–3356, 2012a) and Augenblick et al. (Q J Econ 130(3):1067–1115, 2015), two influential studies that proposed and applied this experimental technique. We use the weak axiom of revealed preference (WARP) to test for external consistency relative to pairwise choice, and demand, wealth and impatience monotonicity to test for internal consistency. We find that choices made by subjects in the original Andreoni and Sprenger (Am Econ Rev 102(7):3333–3356, 2012a) paper violate WARP frequently; violations of all three internal measures of monotonicity are concentrated in subjects who take advantage of the novel feature of CTB by making interior choices. Wealth monotonicity violations are more prevalent and pronounced than either demand or impatience monotonicity violations. We substantiate the importance of our desiderata of choice consistency in examining effort allocation choices made in Augenblick et al. (Q J Econ 130(3):1067–1115, 2015), where we find considerably more demand monotonicity violations, as well as many classical monotonicity violations which are associated with time inconsistent behavior. We believe that the frequency and magnitude of WARP and monotonicity violations found in the two studies pose important confounds for interpreting and structurally estimating choice patterns elicited through CTB. We encourage researchers employing CTB in present and future experiments to include consistency tests in their design and pre-estimation analysis.
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spelling pubmed-55450822017-08-18 External and internal consistency of choices made in convex time budgets Chakraborty, Anujit Calford, Evan M. Fenig, Guidon Halevy, Yoram Exp Econ Original Paper We evaluate data on choices made from convex time budgets (CTB) in Andreoni and Sprenger (Am Econ Rev 102(7):3333–3356, 2012a) and Augenblick et al. (Q J Econ 130(3):1067–1115, 2015), two influential studies that proposed and applied this experimental technique. We use the weak axiom of revealed preference (WARP) to test for external consistency relative to pairwise choice, and demand, wealth and impatience monotonicity to test for internal consistency. We find that choices made by subjects in the original Andreoni and Sprenger (Am Econ Rev 102(7):3333–3356, 2012a) paper violate WARP frequently; violations of all three internal measures of monotonicity are concentrated in subjects who take advantage of the novel feature of CTB by making interior choices. Wealth monotonicity violations are more prevalent and pronounced than either demand or impatience monotonicity violations. We substantiate the importance of our desiderata of choice consistency in examining effort allocation choices made in Augenblick et al. (Q J Econ 130(3):1067–1115, 2015), where we find considerably more demand monotonicity violations, as well as many classical monotonicity violations which are associated with time inconsistent behavior. We believe that the frequency and magnitude of WARP and monotonicity violations found in the two studies pose important confounds for interpreting and structurally estimating choice patterns elicited through CTB. We encourage researchers employing CTB in present and future experiments to include consistency tests in their design and pre-estimation analysis. Springer US 2017-01-06 2017 /pmc/articles/PMC5545082/ /pubmed/28824286 http://dx.doi.org/10.1007/s10683-016-9506-z Text en © The Author(s) 2017 Open AccessThis article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
spellingShingle Original Paper
Chakraborty, Anujit
Calford, Evan M.
Fenig, Guidon
Halevy, Yoram
External and internal consistency of choices made in convex time budgets
title External and internal consistency of choices made in convex time budgets
title_full External and internal consistency of choices made in convex time budgets
title_fullStr External and internal consistency of choices made in convex time budgets
title_full_unstemmed External and internal consistency of choices made in convex time budgets
title_short External and internal consistency of choices made in convex time budgets
title_sort external and internal consistency of choices made in convex time budgets
topic Original Paper
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5545082/
https://www.ncbi.nlm.nih.gov/pubmed/28824286
http://dx.doi.org/10.1007/s10683-016-9506-z
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