Title

Behavioral econometrics for psychologists

Authors

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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