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dc.contributor.authorCappelen, Alexander W.
dc.contributor.authorKariv, Shachar
dc.contributor.authorSørensen, Erik Ø.
dc.contributor.authorTungodden, Bertil
dc.date.accessioned2014-04-29T12:54:50Z
dc.date.available2014-04-29T12:54:50Z
dc.date.issued2014-03
dc.identifier.issn0804-6824
dc.identifier.urihttp://hdl.handle.net/11250/194527
dc.description.abstractWe report an experimental test of the four touchstones of rationality in choice under risk – utility maximization, stochastic dominance, expected-utility maximization and small-stakes risk neutrality – with students from one of the best universities in the United States and one of the best universities in Africa, the University of Dar es Salaam. Although the US and the Tanzanian subjects come from different backgrounds and face different economic prospects, they are united by being among the most able in their societies. Importantly, many of whom will exercise an outsized influence over economic and political affairs. We find very small or no significant differences between the two samples in the degree of rationality according to a number of standard economic measures. An alternative approach is to take cognitive ability (IQ) as a proxy for economic rationality. We show that a canonical IQ test indicates a much larger development gap in rationality relative to our economic tests.nb_NO
dc.language.isoengnb_NO
dc.publisherNorwegian School of Economics. Department of Economicsnb_NO
dc.relation.ispartofseriesDiscussion paper;8/2014
dc.subjectVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212nb_NO
dc.subjectdevelopmentnb_NO
dc.subjectrationalitynb_NO
dc.subjectrevealed preferencenb_NO
dc.subjectstochastic dominancenb_NO
dc.subjectexpected utilitynb_NO
dc.subjectrisk aversionnb_NO
dc.subjectcognitive abilitynb_NO
dc.subjectexperimentnb_NO
dc.titleIs there a development gap in rationality?nb_NO
dc.typeWorking papernb_NO
dc.subject.jelD01
dc.subject.jelD03
dc.subject.jelD81
dc.subject.jelF61
dc.subject.jelF63
dc.subject.jelO12


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