4 found
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  1. A Test of the Principle of Optimality.John D. Hey & Enrica Carbone - 2001 - Theory and Decision 50 (3):263-281.
    This paper reports on an experimental test of the Principle of Optimality in dynamic decision problems. This Principle, which states that the decision-maker should always choose the optimal decision at each stage of the decision problem, conditional on behaving optimally thereafter, underlies many theories of optimal dynamic decision making, but is normally difficult to test empirically without knowledge of the decision-maker's preference function. In the experiment reported here we use a new experimental procedure to get round this difficulty, which also (...)
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    Comparing Behavior Under Risk and Under Ambiguity in a Lifecycle Experiment.Enrica Carbone & Gerardo Infante - 2014 - Theory and Decision 77 (3):313-322.
    Experiments on intertemporal consumption typically show that people have difficulties in optimally solving such problems. Previous studies have focused on contexts in which agents are faced with risky future incomes and have to plan over long horizons. We present an experiment comparing decision making under certainty, risk, and ambiguity, over a shorter lifecycle. Results show that behavior in the ambiguity treatment is markedly different than in the risk condition and it is characterized by a significant pattern of under-consumption.
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  3.  7
    Individual Vs. Group Decision-Making: An Experiment on Dynamic Choice Under Risk and Ambiguity.Enrica Carbone, Konstantinos Georgalos & Gerardo Infante - 2019 - Theory and Decision 87 (1):87-122.
    This paper focuses on the comparison of individual and group decision-making, in a stochastic inter-temporal problem in two decision environments, namely risk and ambiguity. Using a consumption/saving laboratory experiment, we investigate behaviour in four treatments: individual choice under risk; group choice under risk; individual choice under ambiguity and group choice under ambiguity. Comparing decisions within and between decision environments, we find an anti-symmetric pattern. While individuals are choosing on average closer to the theoretical optimal predictions, compared to groups in the (...)
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    Temptations and Dynamic Consistency.Enrica Carbone - 2008 - Theory and Decision 64 (2-3):229-248.
    The objective of this article is to test a prediction of the quasi-hyperbolic model. The test is innovative in that it uses an experimental implementation in which there are two treatments: a forward market and a spot market. In each of these markets goods and activities are sold. The good and activities sold are investment goods or activities and temptation goods or activities. The prediction of the quasi-hyperbolic model is that in the spot (forward) market participants will buy more temptation (...)
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