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RETESTING THE UNCERTAINTY EFFECT USING LOTTERIES WITH REAL PRODUCTS AND MONEY
Author(s) -
Benzion Uri,
Shahrabani Shosh,
Shavit Tal
Publication year - 2013
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/j.1467-8586.2011.00429.x
Subject(s) - realization (probability) , position (finance) , economics , axiom , econometrics , microeconomics , mathematics , statistics , finance , geometry
In the current study, several experiments re‐examine the uncertainty effect using lotteries that include real products, monetary outcomes and electronic gift cards in a between‐subjects design. The study also takes the selling position into consideration, in addition to the buying position considered by all previous works on the uncertainty effect. The results indicate that for all types of lotteries, the bids are higher than the bids for the worst possible realization. These findings are consistent with the internality axiom and do not support the uncertainty effect.