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Abstract for:

Preference Reversals and the Analysis of Income Distributions

Yoram  Amiel,  Frank A  Cowell,  Leima  Davidovitz,  Avraham   Polovin,  March 2003
Paper No' DARP 066: | Full paper (pdf)
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Keywords: Preference reversals; social welfare, inequality, risk and experiments.

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Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Distributional Analysis Research Programme
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Abstract:

It is known from the literature on uncertainty that in cases where individuals express a preference for a high win-probability bet over a bet with high winnings they nevertheless will bid more to obtain the bet with high winnings. We investigate whether a similar phenomenon applies in the parallel social-choice situation. Here decisions are to be made between a distribution with a small group of very high-income people. Results from a number of experimental designs are analysed.