On 24th June 2019 (1-2pm) Dr. Jan Heufer, assistant professor at the ERASMUS University Rotterdam, will give a presentation about “Reciprocity and preferences for giving: A nonparametric analysis” in Q4.245. Afterwards, Mr. Heufer will be available for questions and discussions. His presentation is part of: https://wiwi.uni-paderborn.de/dep1/me/research/discussing-research/seam/
We propose an axiom we call 'Agreement’ to analyse preferences that change between contexts. We derive the axiom's empirical implications; this revealed preference condition generalises GARP when preferences are unstable but choices in one context are still informative about preferences in another context. We apply this idea to a generalised dictator experiment with a within-design in which a player makes several choices in two different contexts, as the dictator's recipient can either be kind or unkind. We find that participants largely have consistent preferences within each context, but that preferences are different between the contexts, and that subjects largely act according to the Agreement axiom. Our findings provide support for modelling and interpreting responses to the behaviour of other players as reciprocity, and that preferences in one context can still be informative about preferences in another context. Our method can also be used to model other kinds of changing preferences, such as risk or ambiguity preferences.