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On the Measurement of Strength of Preference in Units of Money

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We report an experimental study that aims to elicit monetary measures of strength of preference in choices involving pairs of risky prospects. Despite extensive testing to refine the instruments used, we find that these money measures are systematically biased upwards relative to subsequent binary choices. We discuss possible reasons for this bias and its broader implications.
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Document Type: Research Article

Publication date: June 1, 2014

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