Testing Validity of Using Sample Mean in Studies of Behavioral Facts

Yongchen Zou, Runqi Hu

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DOI: 10.4236/me.2011.23040                

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.

Keywords

Risk Preferences, Behavioral Economics, Prospect Theory, Heuristics

Conflicts of Interest

The authors declare no conflicts of interest.

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