Replication data for: Who Is (More) Rational?

  • Daniel Silverman (Contributor)
  • Syngjoo Choi (Contributor)
  • Wieland Müller (Contributor)
  • Shachar Kariv (Contributor)

Dataset

Description

Revealed preference theory offers a criterion for decision-making quality: if decisions are high quality then there exists a utility function the choices maximize. We conduct a large-scale experiment to test for consistency with utility maximization. Consistency scores vary markedly within and across socioeconomic groups. In particular, consistency is strongly related to wealth: a standard deviation increase in consistency is associated with 15-19 percent more household wealth. This association is quantitatively robust to conditioning on correlates of unobserved constraints, preferences, and beliefs. Consistency with utility maximization under laboratory conditions thus captures decision-making ability that applies across domains and influences important real-world outcomes.
Date made availableJan 1 2014
PublisherICPSR

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