Afriat in the lab

Bruggen, Paul van; Heufer, Jan

doi:10.1016/j.jet.2017.03.007

Cited by 4 publications

(4 citation statements)

References 20 publications

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“…Designing the decision situation. We use two instantiations of decision accuracy based on the revealed preference logic, GARP and Afriat's index, to assess decision accuracy of children varying in age (Van Bruggen and Heufer, 2017). The GARP index is the dichotomous index indicating whether or not the series of choices that an individual makes are consistent with GARP.…”

Section: Research Approachmentioning

confidence: 99%

Verbal aptitude hurts children's economic decision‐making accuracy

Bruyneel

Cherchye

Cosaert

et al. 2020

Behavioral Decision Making

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The impact of children's decision making increases with age and has relatively increased through time. Although a lot is known about cognitive development, less is known about how this development impacts decision accuracy in economic situations. This study builds on revealed preference theory to study the impact of cognitive aptitude on economic decision‐making accuracy and explores the intervening role of decision heuristics. In a study (n = 100) where children from three age groups had to make choices between combinations of products, we found that decision accuracy was lower for kindergarteners than for children from the third and sixth grade, replicating and validating older findings. We found that one aspect of cognitive aptitude, namely, verbal aptitude, hurts rather than helps decision accuracy. Further explorations suggested that this relation was due to the decreased use of the “more is better” heuristic, a child's preference for options with many units, which decreased with increasing verbal aptitude but increased rational decision making. We discuss the implications of the negative effect of verbal aptitude on economic decision‐making accuracy.

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Section: Research Approachmentioning

confidence: 99%

Verbal aptitude hurts children's economic decision‐making accuracy

Bruyneel

Cherchye

Cosaert

et al. 2020

Behavioral Decision Making

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“…Matzkin (1991), Forges and Minelli (2009), Cherchye et al (2014) and Nishimura et al (2017) analyzed models with nonlinear budgets. Finally, van Bruggen and Heufer (2017) showed that GARP is a valid test of the utility maximization hypothesis in lab environments.…”

Section: Other Recent Contributionsmentioning

confidence: 99%

Samuelson’s Approach to Revealed Preference Theory: Some Recent Advances

Demuynck

Hjertstrand

2019

Remaking Economics: Eminent Post-War Economists

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“…Varian (1988) argued that, when part of the consumption space is not observed, GARP does not have any empirical content. However, recently, Heufer and van Bruggen (2017) showed that if the "the rest of the world" remains unchanged during all the decision-making problems, GARP has empirical content. They showed that, for decisions made within a short period, GARP has an empirical content, whereas this is not the case for decisions made with a relatively large time gap.…”

Section: Designmentioning

confidence: 99%

A dual-process model of decision-making: The symmetric effect of intuitive and cognitive judgments on optimal budget allocation.

Stamos¹,

Bruyneel²,

Rock³

et al. 2018

Journal of Neuroscience, Psychology, and Economics

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Understanding the influence of dual-processing system on budget waste resulting from choice inconsistencies is critical in helping individuals maximize decision utility. In two studies we rely on the Generalized Axiom of Revealed Preferences (GARP) to explore the severity of choice inconsistencies resulting from intuitive and cognitive judgments separately, as well as overall severity across the two types of judgments. We focus on choice inconsistency that leads to the inefficient use of individuals' budget and not on the simple preferences divergence that may result from the two types of judgment. We find that budget waste resulting from intuitive and cognitive judgments is comparable, but that overall budget waste across the two types of judgments is significantly higher. These findings suggest that the inconsistency in choices resulting from intuitive versus cognitive judgments is responsible for significant loss of decision utility in individuals' economic decisions, rather than choice inconsistencies resulting from a specific type of evaluation in itself. We discuss theoretical and practical implications of our findings.

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Afriat in the lab

Cited by 4 publications

References 20 publications

Verbal aptitude hurts children's economic decision‐making accuracy

Verbal aptitude hurts children's economic decision‐making accuracy

Samuelson’s Approach to Revealed Preference Theory: Some Recent Advances

A dual-process model of decision-making: The symmetric effect of intuitive and cognitive judgments on optimal budget allocation.

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