Title: Do institutions promote rationality? : an experimental study of the three-door anomaly
Authors : Slembeck, Tilman
Tyran, Jean-Robert
Published in : Journal of economic behavior & organization
Volume(Issue) : 54
Issue : 3
Pages : 337
Pages to: 350
Publisher / Ed. Institution : Elsevier
Issue Date: 2004
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (Publication)
Language : English
Subjects : Communication; Competition; Institution; Learning; Three door anomaly; Group decision making; Individual decision making
Subject (DDC) : 150: Psychology
330: Economics
Abstract: The three-door problem is an example of a systematic violation of a key rationality postulate that has attracted much attention. In this seemingly simple individual decision task, most people initially fail to apply correctly Bayes’ Law, and to make the payoff-maximizing choice. Previous experimental studies have shown that individual learning reduces the incidence of irrational choices somewhat, but is far from eliminating it. We experimentally study the roles of communication and competition as institutions to mitigate the choice anomaly. We show that the three-door anomaly can be entirely eliminated by these institutions.
Departement: School of Management and Law
Organisational Unit: Center for Economic Policy (FWP)
Publication type: Article in scientific Journal
DOI : 10.1016/j.jebo.2003.03.002
ISSN: 0167-2681
URI: https://digitalcollection.zhaw.ch/handle/11475/9635
Appears in Collections:Publikationen School of Management and Law

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