Econometrica: Mar 1991, Volume 59, Issue 2

Observing Violations of Transitivity by Experimental Methods

https://doi.org/0012-9682(199103)59:2<425:OVOTBE>2.0.CO;2-#
p. 425-439

Chris Starmer, Graham Loomes, Robert Sugden

The preference reversal phenomenon is usually interpreted as evidence of nontransitivity of preference, but has also been explained as the result of: the difference between individuals' responses to choice and valuation problems; the devices used by experimenters to elicit valuations; and the "random lottery selection" incentive system. This paper reports an experiment designed so that none of these factors could generate systematic nontransitivities; yet systematic violations of transitivity were still found. The pattern of violation was analogous with that found in previous preference reversal experiments and is consistent with regret theory.
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