Imperfect perception and stochastic choice in experiments / Pablo Brañas-Garza, John Smith.

Format:

Book

Author/Creator:

Brañas-Garza, Pablo, author.

Smith, John, author.

Series:

Cambridge elements. Elements in behavioural and experimental economics, 2634-1824.

Cambridge elements. Behavioural and experimental economics, 2634-1824

Language:

English

Subjects (All):

Psychophysics.

Stochastic processes.

Physical Description:

1 online resource (60 pages) : digital, PDF file(s).

Edition:

First edition.

Place of Publication:

Cambridge : Cambridge University Press, 2023.

Summary:

The branch of psychology that studies how physical objects are perceived by subjects is known as psychophysics. A feature of the experimental design is that the experimenter presents objectively measurable objects that are imperfectly perceived by subjects. The responses are stochastic in that a subject might respond differently in otherwise identical situations. These stochastic choices can be compared to the objectively measurable properties. This Element offers a brief introduction to the topic, explains how psychophysics insights are already present in economics, and describes experimental techniques with the goal that they are useful in the design of economics experiments. Noise is a ubiquitous feature of experimental economics and there is a large strand of economics literature that carefully considers the noise. However, the authors view the psychophysics experimental techniques as uniquely suited to helping experimental economists uncover what is hiding in the noise.

Contents:

Cover

Title page

Copyright page

Imperfect Perception and Stochastic Choice in Experiments: Behavioural and Experimental Economics

Contents

1 The Apparently Random Coffee Purchases of a Colleague

2 A Brief Introduction to the Psychophysics Literature

Fechner's Law

The Range of Psychophysics Experimental Designs

Stevens' Law

The Elusive Quest for a Single Equation

Stochastic Responses and the Psychometric Function

Signal Detection Theory

Nonchoice Data

Key Psychophysics Insights for Experimental Economists

3 Psychophysics Insights Already in the Economics Literature

Stochastic Choice and Classic Psychophysics References

Individual Choice without (External) Uncertainty

Individual Choice with (External) Uncertainty

Choice in Strategic Settings

4 Models that are Difficult to Test without Psychophysics Experimental Techniques

Models of Rational Inattention

Drift Diffusion Models

The Distribution of the Noise

5 Incentivized Perceptual Decision-making Literature

Using Stimuli with Countable Measures to Test Models of Rational Inattention

Using Stimuli with Continuous Measures to Study Stochastic Choice

Using Stimuli with Countable Measures to Test Drift Diffusion Models

Using Stimuli with Uncountable Measures to Test Drift Diffusion Models

Using Imperfectly Perceived Stimuli to Improve the Realism of the Experiment

Other Incentivized Experiments Employing Imperfectly Perceived Stimuli

Overview of the Reviewed Literature

6 Possible Directions for Experimental Economics

More Economics Experiments on Rational Inattention

Multi-attribute Designs

Designs Striving for Realism

Values Elicited, Not Induced

Reducing the Influence of Cognitive Ability

Social Preferences, Complementarities, Process Data, and Material Incentives.

Candid Advice on Reading the Brain Sciences Literature: Be Skeptical

Final Thoughts

References

Acknowledgments.

Notes:

Title from publisher's bibliographic system (viewed on 15 Dec 2023).

Includes bibliographical references.

ISBN:

9781009058667

1009058665

9781009058865

100905886X

9781009049207

1009049208

OCLC:

1481800932