Axiom of Monotonicity: An Experimental Test

Tridib Sharma, Radovan Vadovic
2011 Social Science Research Network  
The Axiom of Monotonicity (AM) is a necessary condition for a number of expected utility representations, including those obtained by de Finetti (1930 ), von Neumann and Morgenstern (1944 ), Savage (1954 , and Anscombe and Auman (1963). The paper reports on experiments that directly test AM by eliminating strategic uncertainty, context, and peer e¤ects. In one treatment, the state space is simple to formulate. Here we do not observe violations of AM. When the state space is a bit more obscure,
more » ... bit more obscure, we ...nd signi...cant violations of AM. JEL codes: D9, C7, C9.
doi:10.2139/ssrn.1597946 fatcat:2gqkyxqwpbcn7bhdlrndjazlju