Social and Behavioral Sciences Commons^™

Value Is Subjective And Other Fallacies In Economics, Anonymous

SURGE

“Before I hand back your exams, let’s review the overall performance of the class. Listed here are the median and mean scores. You can also see the grades of five highest scores on exam…”

I sat anxiously in my chair as my economics professor shared class statistics before finally handing back our tests.

After he distributed them to a number of students, they mingled at the front the room, speculating who earned the top scores.

“Dude, who do you think got the 101?”

“I bet it was *David?”

“Or maybe Mike? He’s always answering questions correctly.”

“Could be. But I …

Allocating In The Presence Of Dominance: A Mean-Variance Portfolio Choice Economic Experiment, Jack Gardner

Gettysburg Economic Review

I conduct a mean-variance portfolio choice economic experiment to evaluate how individuals’ portfolio choices deviate from what modern portfolio theory considers optimal. The experimental framework is comprised of three treatments. In each treatment the portfolio selection task involves choosing between two risky assets with zero correlation among their payoffs and one risk free asset. Participants are tasked with completing thirty choice rounds in which they must allocate a constant experimental capital amount to the available asset options after which they are shown period-by-period state-realizations. I utilize the definition of dominance as described in Neugebauer (2004), and Baltussen and Post (2011), …