Behavioral econometrics for psychologists

    Authors

    S. Andersen; G. W. Harrison; M. I. Lau;E. E. Rutstrom

    Comments

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    Abbreviated Journal Title

    J. Econ. Psychol.

    Keywords

    Econometrics; Behavioral economics; Decision making; Risk preferences; CUMULATIVE PROSPECT-THEORY; PROBABILITY WEIGHTING FUNCTION; EXPECTED; UTILITY-THEORY; NON-NESTED HYPOTHESES; YORK-CITY CABDRIVERS; DECISION-MAKING; RISK-AVERSION; MODEL SELECTION; HERTWIG 2006; ALLAIS; PARADOX; Economics; Psychology, Multidisciplinary

    Abstract

    We make the case that psychologists should make wider use of econometric methods for the estimation of structural models. These methods involve the development of maximum likelihood estimates of models, where the likelihood function is tailored to the structural model. In recent years these models have been developed for a wide range of behavioral models of choice under uncertainty. We explain the components of this methodology, and illustrate with applications to major models from psychology. The goal is to build, and traverse, a constructive bridge between the modeling insights of psychology and the statistical tools of economists. (C) 2010 Elsevier B.V. All rights reserved.

    Journal Title

    Journal of Economic Psychology

    Volume

    31

    Issue/Number

    4

    Publication Date

    1-1-2010

    Document Type

    Article

    Language

    English

    First Page

    553

    Last Page

    576

    WOS Identifier

    WOS:000281014900008

    ISSN

    0167-4870

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