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Testing Validity of Using Sample Mean in Studies of Behavioral Facts
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Abstract
In this paper we argue that a couple of taken-for-granted methods employed in studying behavioral facts of human risk preference are mistakable. We call for within-subjects experiment design and propose a simple statistical method that might be used to test the validity of using sample mean in interpreting as well as generalizing risk preferences.
KeywordsRisk PreferencesBehavioral EconomicsProspect TheoryHeuristics
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