INVESTIGATING GENERALIZATIONS OF EXPECTED UTILITY-THEORY USING EXPERIMENTAL-DATA

A number of generalizations of the expected utility preference functio nal are estimated using experimentally generated data involving 100 pa irwise choice questions repeated on two separate occasions. Likelihood ratio tests are conducted to investigate the statistical superiority of the various generalizations, and the Akaike information criterion i s used to distinguish between them. The economic superiority of the va rious generalizations is also explored and the paper concludes that, f or many subjects, the superiority of several of the generalizations is not established.